Reference no: EM132911006

Problem 1: You look at a cash flow problem. The R&D was already done and you were successful and ended up with a product. The original projections about the products volume, price, costs, etc. were correct when you started the R&D. However, you see now that you won't go forward with the product because the NPV is negative. This means, before R&D was started, the finance manager forgot to:

Group of answer choices

Option 1: Do any kind of financial analysis

Option 2: Account for R&D uncertainty

Option 3: Properly PV the second stage cash flows

Option 4: Used too high a probability of success