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In class, we analyzed the introduction of the HomeNet device by Cisco. The initial forecasts included marketing and support costs of $2.8 million per year
In class, we analyzed the introduction of the HomeNet device by Cisco. The initial forecasts included marketing and support costs of $2.8 million per year during years 14. Under that assumption, we calculated that HomeNets NPV would be equal to $7.6 million at a 12% cost of capital. Suppose the marketing and support costs may be as high as $3.8 million per year. What is HomeNets NPV in this case?
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