Based on your discussion, consider the following scenario: 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?

Answer rating: 100% (QA)

To determine whether Audio Partners should make the investment we need to analyze the potential return on investment and compare it to the cost of the ... View the full answer