Calculation of the most payment to complete development

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Imagine that you manage a company that has invested $5 million in developing a new product, but has not completed development. At the last meeting, your salespeople report that the arrival of new competing products has reduced expected sales of your new product to $3 million.

If it would cost $1 million to finish development and make the product, should you do so?

What is the most you should pay to complete development? Why? 

Reference no: EM13197802

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