Compare the two new product development projects: Big Note and the Fold. Which project should be funded? What are the risks and challenges, and benefits for each project?

Project 1 involves a new iteration of an existing product line. The Big Note 20 will have the latest chipset, a 5-lens camera system using the latest optical and digital zoom software and technology, 5G+ latest broadband capability, 7.1-inch screen, latest operating system, etc. This is a new phone, but an iteration of its current smartphone line. The Big Note 20 will look like the Big Note 19.

Project 2 is a more radical form factor idea. Known as the Fold, the new phone-tab concept would offer the latest chipset and software, 5G+ broadband, 5 lens camera system but with the modular lens offering screw-on attachment of optical lenses with a hand-controlled zoom like an SLR camera, and a new fold-in-half screen. When unfolded, the single phone screen is 7.6 inches. Unfolded, Fold is a two-handed phone and one-handed when folded (6.2 inches).

Big Note 20 NPV Net	$1,902,365,628.15
Fold NPV Net	$1,482,967,345.49
Big Note 20 NPV	$1,902,365,628.15
Total Cost/Loss of Existing Phone Sales	$273,990,000.00
Fold NPV	$1,482,967,345.49
Total Cost/Loss of Existing Phone Sales	$6,540,000.00
Fold NPV New Project vs. Existing Phones	$1,476,427,345.49
Big Note 20 NPV New Project vs. Existing Phones	$1,628,375,628.15

Net Revenue: Big Note 20 vs. Fold 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 | | | | l | | | l | | | 0 II II II II II II II II II II II II 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 13 19 20 21 22 23 24 25 26 27 23 450,000,000 - 100,000,000 l Big Note 21 Net Revenue l Fold 2 Net Revenue Fold Net Revenue vs. Existing Phone Sales 200,000,000 150,000,000 100,000,000 50,000,000 | | | | | | | | | | | | | | | 0 I I l l I l l l I l l I 2 3 4 5 5 7 3 9 10 11 12 13 14 15 15 12 13 19 20 21 22 23 24 25 26 22 23 50,000,000 - 100,000,000 l Fold 2 Net Revenue l Existing Phone Sales Revenue Big Note 21 Net Revenue vs. Existing Phone Sales 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 5 6 8 9 10 11 1 12 13 14 15 16 17 18 19 20 21 22 28 50,000,000 -100,000,000 Big Note 21 Net Revenue Existing Phone Sales Revenue