Question
Prescott Labs is considering developing a new medical product. You know that this will require extensive testing and possible modification before it can be launched.
Prescott Labs is considering developing a new medical product. You know that this will require extensive testing and possible modification before it can be launched. Still, you know that even if it is launched two years from now, the present value of sales over the expected 10 year product lifecycle will cover these initial costs of testing and product development. . But now the boys down at the lab tell you that it may not launch until three years from now (instead of 2 years). How does this affect your assessment of going ahead with funding the product? Explain in a few sentences.
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