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

(a) In Problem 10-22 how much is it worth to the after 1 year if the firm to terminate the product after 1 year the net revenues are negative?
(b) How much does the ability to terminate early change the P (loss) and the standard deviation?
In Problem 10-22
(a) In Problem 10-22 how much is it worth to

State Bad OK Great 0.3 0.5 0.2 Probabity Net revenue5.000 5000 $20,000 Life, in years 10

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

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