While working for company A + you were tasked with determining if a specific product development project
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While working for company A you were tasked with determining if a specific product development project was going to be feasible or not. For this task you decided to use the NPV method.After talking with the Project Manager and some of the Technical Leads for this potential project you were able to gather the following:Product Development period: years, with a yearly cost of $Product Testing period: year, with a yearly cost of $Where Testing can only start after Development is complete After calling a few marketing companies, you were able to estimate a yearly expense of $ for marketing during the years your company will sell this product. During the same years that your company will spend selling this product, you estimated a total yearly expense of $ to keep producing the product.Lastly, the sales department estimated a total yearly revenue of $ from selling the product.Where sales can only start after Testing has been completed Company A is looking for a yearly return of for investing in this product. Discount rate of What is the NPV for this product development?
Related Book For
Project Management The Managerial Process
ISBN: 9781260570434
8th Edition
Authors: Eric W Larson, Clifford F. Gray
Posted Date: