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the launch of a new product by Westlake Corporation is successful, the present value of the payoff (at the time the product is brought to
the launch of a new product by Westlake Corporation is successful, the present value of the payoff (at the time the product is brought to market) is $34.3 milion. If the launch fails, the present value of the payoff is $12.3 milion. I the product goes directly to market, there is a 50 percent chance of success. Alternatively, the company can delay the launch by one year and spend $133 million to test-market the product. Test-marketing would allow the firm to improve the product and increase the probability of success to 80 percent. The appropriate discount rate is 11 percent. Calculate the NPV of test-marketing before going to market. (Enter your answers in dollars, not millions of dollars. Do not round intermediate calculations and round your answers to nearest whole dollar amount, e.g. 1,234,567.) Test-marketing first NPV $
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