Problem
Assume that cost to proceed, initial monthly sales, and the monthly gradient can vary 20% to the good and 30% to the bad. Create bad, most likely, and good scenarios, and find the IRR for each.
Problem 12
New Tech has a new product that has incurred R&D expenses of $375,000. An additional $500,000 is needed if the product is to proceed. Initial sales will be $50,000 per month, and they will increase by $5000 per month. The market is moving fast, and the product will be closed out in 2 years. What is the new product's IRR for deciding whether to proceed?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.