Probability of positive Net Positive Value after competitors response
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If competitors do not respond to a new product, there is a 0.9 probability of a positive net present value. If competitors do respond, there is a 0.4 probability of a positive net present value. There is a 0.8 probability that competitors will respond.
What is the probability of a positive net present value?
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Solution Summary
The probabilities of positive NPV after competitors response is examined.
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- MBA, Indian Institute of Finance
- Bsc, Madras University
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