Question: Your firm is considering designing a new computer/TV interface. If you design this product and demand is high, you believe the present value of cash

Your firm is considering designing a new computer/TV interface. If you design this product and demand is high, you believe the present value of cash flows will be $15 million. If demand is low, the present value of revenues will be only $3 million. The probability that demand will be high is 35%.The product will cost $7 million dollars to design. Which of the following best decrbes the NPV of the project.

Now, McWeezy consulting has offered to figure out wether demand willl be high or low next year. Assuming McWeezy will be correct in their assessment of demand, what is the most you would be willing to pay for their services (and still have NPV=0)? Put the number in millions, no commas, no $ sign, That is, if the answer is $100,000, put in 0.1

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