If you have concerns with a question, or think INFORMATION QUESTIONS Your ANSWERS HINTS there is an error, you can make notes and highlight them in turquoise Must be uploaded within 40 minutes of starting or 3:30pm. whichever comes sooner. Short Answer #1 You are creating a new business, Poolies, to launch a new pool oaty item. Your marketing, management and accounting team has presented you the following information for three choices: Choice 1: If we take the product directly to market, there is a 50 percent chance that the project will succeed. Choice 2: If we spend $225,000 we can build/pay a focus group. increasing the probability that Option 1's success rate will increase by 60 percent. Choice 3: If we hire an external consulting rm for $360,000 to provide research on demand and product specications, the success of the hired rm's consulting projects overall success rate is 80 percent. If Poolies can get their product to the market successfully, irrespective of the choices and new spending, the exisiting NW cash flows will be $1.9 million. If Poolies cannot, the NPV is $0. Hint: You do not need any special excel functions (Le. Part 1: Calculate the adjusted NW for choices 1, 2 and 3 considering appropriate "=PV\") for this, but please use basic equations in the spending and probabilities. green boxes to get to the answers. Hard coded answers will lose points. Part 2: Which choice should we go with? And more importantly...for your choice, Again, pretend you are explaining to someone who knows elaborate in a max of a few sentences why we would choose it and what it tells nothing very little finance and you must clearly and breiy us? respond. Response for part 2