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You are planning to produce a new action figure called However, you are very uncertain about the demand for the productit is a hit, you
You are planning to produce a new action figure called However, you are very uncertain about the demand for the productit is a hit, you will have net cash flows of $ million per year for three years starting next year at t If it failsyou will only have net cash flows of million per year for two years also starting next yearThere is an equal chance that it will be a hit or failure robability percen You will not know whether it is hit or a failure until after the first year's cash flows are in t n You must spend million immediately for equipment and the rights to produce the figureIf the discount rate is percent, calculate NPV
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