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LP Company is planning to launch a new product. A market research study, costing $130,000, was conducted last year, indicating that the product will be
LP Company is planning to launch a new product. A market research study, costing $130,000, was conducted last year, indicating that the product will be successful for the n to be 173,000 in each of the first two years and S111000 in each of the last two years. The company plans to undertak an immediate advertising campaign that will cost $82,000. Nev using campaign that will cost $82,000. New manufacturing equipment will have to be purchased for have zero disposal value at the end of the four years. Assuming a discount rate of 7%, what is the net present value of launching the new product? 10. AO $12,391 BO $17.968 CO 826,053 DO $37,777 EO $54,776 FO $79,426
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