What is the npv for market

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What is the NPV for each market, assuming each is entered immediately?

Examine the possible combinations of time and place for introducing the new product. Can any possibilities be eliminated as suboptimal without further calculations? Why or why not? Which entry strategy is optimal?

State a general capital budgeting rule for selecting the optimal strategy in this and similar problems.

Suppose there are three potential markets, A, B, and C, where A and B are as above and C requires an investment of $40 regardless of when entered and will be worth either $55 or $40 one year later. Test the decision rule you formulated in part (c.) above to check that it produces the optimal decision for this revised problem.

Reference no: EM132467320

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