Why should audio partners make the investment

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Reference no: EM133496581

Question: Audio Partners is investing $2 million into research and design. This investment is expected to deliver marketable products in a 24 -month period. The investment is necessary to maintain market viability and to take a first mover advantage in the market. Estimated cash flows in two years from this investment are $500,000 per year. Why should (or shouldn't) Audio Partners make the investment?

Reference no: EM133496581

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