Gidget has a new widget to bring to market. If the firm goes directly to market with the product, there is a 50% chance of success. However, the firm can conduct customer segment research, which will take a year and cost $10,000,000. By going through research, the company can better target potential customers and increase the probability of success to 72%. If successful, the widget will bring a present value profit (at the time of initial selling) of $75 million. If unsuccessful, the present value profit is only $12 million. The appropriate discount rate is 10%.

Calculate the NPV of going directly to the market. (Enter whole numbers, e.g. 5 million should be 5,000,000)

Calculate the NPV for conducting customer segment research. (Enter whole numbers, e.g. 5 million should be 5,000,000)