investment timing

Project Description:

digital inc. is considering production of a new cell phone.the project requires an investment of $20 million. if the phone is well received, the project
will produce cash flows of $10 million a year for 3 years; but if the market does not like the product, the cash flows will be only $5 million per year. there is a 50% probability of
both good and bad market conditions. digital can delay the project for a year while it
conducts a test to determine whether demand will be strong or weak. the delay will not
affect the project's cost or its cash flows. digital's wacc is 10%. what action would you
Skills Required:
Project Stats:

Price Type: Negotiable

Total Proposals: 11
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