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MinkFlow has invented a new phone. They intend on investing in marketing and warehouses for a total of $2 million. If there is a good
MinkFlow has invented a new phone. They intend on investing in marketing and warehouses for a total of $2 million. If there is a good market acceptance (65% chance), cash flows would be $420,000/yr starting in Yr. 1 and will last 8 years. If there is no good acceptance (35%), cash flows will be $75000 per year and last only two years. What is the projects ENPV? What is the standard deviation of the projects NPV? The discount rate is 10%
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