You manage a company that has invested 5 million in


You manage a company that has invested $5 million in developing a new product, but the new product isn’t finished yet. Your salespeople give you some bad news. A new product has entered the market, and the expected sales of your product are now just $3 million. In addition, your new product won’t be finished unless you invest an additional $1 million in it. Should you invest the additional $1 million? How much additional money should you be willing to invest to complete the product?

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Business Economics: You manage a company that has invested 5 million in
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