Question: (a) In Problem 10-22 how much is it worth to the firm to terminate the product after 1 year if the net revenues are negative?

(a) In Problem 10-22 how much is it worth to the firm to terminate the product after 1 year if the net revenues are negative?

(b) How much does the ability to terminate early change the P (loss) and the standard deviation?

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a The 35K is still a sunk cost and should be ignored PP... View full answer

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