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Leokris [45]
3 years ago
6

Consider Corp X is introducing a product on a trial basis and the cost is $300 million. And the discounted cash flow (DCF) model

based on the sales projections suggests that it will generate $280 million profit. If the trial is successful, it will introduce the product on a full-scale basis with an additional investment of $1.2 billion within the next 3 years. This investment estimates suggests that it would generate $950 on a DCF basis. Assume that the standard deviation of the underlying asset is 35%. Would you accept the project?
Business
1 answer:
Serhud [2]3 years ago
7 0
I would accept the project because the model if based of a reasonably profit
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3 0
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liubo4ka [24]

Answer:

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Cheers.

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