B&B has a new baby powder ready to market. If the firm goes directly to the market
Fantastic news! We've Found the answer you've been seeking!
Question:
B&B has a new baby powder ready to market. If the firm goes
directly to the market with the product, there is only a percent
chance of success. However, the firm can conduct customer segment
research, which will take a year and cost $ million. By going
through research, B&B will be able to better target potential
customers and will increase the probability of success to
percent. If successful, the baby powder will bring a present value
profit at time of initial selling of $ million. If
unsuccessful, the present value payoff is only million. The
appropriate discount rate is percent.Calculate the NPV for the firm if it conducts customer segment
research and if it goes to market immediately. Enter your answers
in dollars, not millions of dollars, eg Do not round
intermediate calculations and round your answers to decimal
places, eg
B Should the firm conduct customer segment research or go to market immediately?
Posted Date: