Using molecular-gastronomy techniques, NitroFood developed a new product called icey-dog, where hot dogs are instantaneously frozen with
Question:
Using molecular-gastronomy techniques, NitroFood developed a new product called icey-dog, where hot dogs are instantaneously frozen with liquid nitrogen to seal the flavor. The company can choose between licensing the technology for $95M to Oscar-Meyer or selling the product on their own. We know that, if they sell by themselves, NitroFood will make $4.0 per package of hot dogs and the company will sell either 60 Million (high demand), 50 Million (medium demand), or 10 Million (low demand) packages of hot dogs, depending on how the customers like the new frozen hot dogs. If they decide to sell the products on their own. They need to make an advanced investment of 28M to build machines that freeze hot dogs.
Complete the following payoff table (you can drop the zeros of million) :
Demand | High Demand | Medium Demand | Low Demand |
License to Oscar-Meyer | |||
Sell on their own |
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones