Em 1 Sal Corporate Financial Management Section 2 2202 Spring 2020/2021 11 8 Mohammed Bayyood has a new product to market in Palestine. If the Mohammed goes directly to the market with the product, there is only a 60 percent chance of success. However, 20 Mohammed can conduct customer research, which will take a year and cost $1.8 million. By going through research, Mohammed will be able to better target potential customers and will Increase the probability of success to 30 percent. If successful, Mohammed's product will bring a present valve profit at time of initial selling) of $28 million. If unsuccessful the present al payoff is only S4 million. Should Mohammed conduct customer segment research or yo directly to market. The appropriate discount rate is 15 percent. Mohammed chooses the customer research product. The NPV is SI5.50 100.000 316206,920 21.12.2002 MS used in class Chapter 7 4) ENG 3:33 PM 1/23/2001 Al-Quds University (ar) * > > 2021 / 2020 Spring > > > 2202 - 2 he Financial Management - Section 1 26 ?Which three of the statements are advantages of using sensitivity analysis 30 at identifies the relationships between various unpredictable variables ao It cannot be used when making contingency plans. O uit does not provide information for decision making It may lead to an indication of where further investigation might be worthwhile do MS used in class Chapter 7 - Moodle SKITCEAQU/Powered by - 2020.0 Fedlats@alaudsedu a litt//www.al :[ Em 1 Sal Corporate Financial Management Section 2 2202 Spring 2020/2021 11 8 Mohammed Bayyood has a new product to market in Palestine. If the Mohammed goes directly to the market with the product, there is only a 60 percent chance of success. However, 20 Mohammed can conduct customer research, which will take a year and cost $1.8 million. By going through research, Mohammed will be able to better target potential customers and will Increase the probability of success to 30 percent. If successful, Mohammed's product will bring a present valve profit at time of initial selling) of $28 million. If unsuccessful the present al payoff is only S4 million. Should Mohammed conduct customer segment research or yo directly to market. The appropriate discount rate is 15 percent. Mohammed chooses the customer research product. The NPV is SI5.50 100.000 316206,920 21.12.2002 MS used in class Chapter 7 4) ENG 3:33 PM 1/23/2001 Al-Quds University (ar) * > > 2021 / 2020 Spring > > > 2202 - 2 he Financial Management - Section 1 26 ?Which three of the statements are advantages of using sensitivity analysis 30 at identifies the relationships between various unpredictable variables ao It cannot be used when making contingency plans. O uit does not provide information for decision making It may lead to an indication of where further investigation might be worthwhile do MS used in class Chapter 7 - Moodle SKITCEAQU/Powered by - 2020.0 Fedlats@alaudsedu a litt//www.al :[
