Would recommend doing the survey

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Question 1: The company plans to produce a new product, the project requires an Initial Outlay of $ 30 billion and it is estimated that it will generate a NPV of $ 12 billion if successful and if fails, t will generare minus $ 8 billion if it fails. The chance that the project will be successful is 50%. There is also an option to conduct a market survey to predict the market potential of the product. The cost for conducting the survey is $ 2 billion. There is a 60% chance that the survey results will say that the project will be successful. Would you recommend doing the survey? Provide your answer with relevant calculation.

Reference no: EM132861367

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