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A Firm Estimates That the Net Present Value of Future

Question 125

Multiple Choice

A firm estimates that the net present value of future cash flows from a new product will be $125,000. The firm estimates that they will spend $135,000 on product development and research. Based on these figures, what should the firm do?


A) Develop the product
B) Not develop the product
C) Release the product to market immediately
D) Cannot be determined from the information given

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