Exciting Opportunity with Ang Electronics, Inc. New DVDR!
Are you ready to explore the potential of Ang Electronics, Inc.'s new DVDR?
Do you want to know the NPV of going directly to market and the NPV of test marketing before going to market?
Calculation of NPV
NPV = Total value of expected payoff
NPV = $34,700,000 * 60% + $12,700,000 * (1-60%)
NPV = $20,820,000 + $5,080,000
NPV = $25,900,000
Therefore, the NPV of going directly to the market is $25,900,000
Calculation of NPV for Test Marketing
NPV = PV of expected payoff after year - Initial testing cost
NPV = $34,700,000 * 90% - $12,700,000 * (1-90%) / (1 + 10%) - $1,370,000
NPV = $32,500,000 / 1.10 - $1,370,000
NPV = $15,845,454.55
Therefore, the NPV of test marketing before going to market is $15,845,454.55
Unlock the Potential of Ang Electronics, Inc.'s DVDR!
If you are excited about the new DVDR developed by Ang Electronics, Inc., you are in for a treat! The company has calculated the NPV (Net Present Value) for both scenarios - going directly to market and conducting test marketing before launching the product.
By going directly to market, the NPV is calculated to be $25,900,000. This shows the potential value of the product if it succeeds in the market right away.
On the other hand, if the company decides to conduct test marketing before the official launch by spending $1.37 million to improve the product and increase the probability of success to 90%, the NPV is calculated to be $15,845,454.55. This option provides a strategic approach to ensure a higher chance of success in the market.
With these calculated values, Ang Electronics, Inc. is offering an exciting opportunity for investors and stakeholders to be part of this innovative venture. Are you ready to explore the potential and maximize the returns of the new DVDR? Get involved now and be part of the success story!