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Teddy Bridge has invented a new phone called Enola, and trademarked it. They intend on investing in marketing and warehouses for a total of $2
Teddy Bridge has invented a new phone called Enola, and trademarked it. 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. Calculate: ENPV of project and the standard deviation of the projects NPV. Discount rate: 10%.
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