Develop and launch a new product

Reference no: EM132465223

A company is deciding whether to develop and launch a new product. Research and development costs are expected to be $400,000 and there is a 70% chance that the product launch will be successful, and a 30% chance that it will fail. If it is successful, the levels of expected profits and the probability of each occurring have been estimated as follows, depending on whether the product's popularity is high, medium or low:

If it is a failure, there is a 0.6 probability that the research and development work can be sold for $50,000 and a 0.4 probability that it will be worth nothing at all.

Reference no: EM132465223

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Develop and launch a new product : A company is deciding whether to develop and launch a new product. Research and development costs are expected to be $400,000 and there is a 70% chance

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