"comsec corp. is planning on introducing a new smartphone to the market. the company is deciding between the following two options: option 1: rush the smartphone to market by paying overtime and speeding up testing. the company will pay $7.5 million initially and will receive $4.3 million in annual profit from the smartphone during the first year. during years 2 through 5, the annual profit from the smartphone will decrease by $540,000 from the previous year. the smartphone will be obsolete by year 6 so the profit in year 6 and beyond is $0. option 2: move more slowly in getting the smartphone to market. in this option, the company pays $1 million initially and $1 million in the first year. since the smartphone is introduced to the marker later than with option 1, the company will earn less revenue with option 2. the company will earn an annual profit of $2.24 million in year 2. in years 3 through 5, the annual profit from the smartphone will decrease by $180,000 from the previous year. the smartphone will still be obsolete by year 6 so the profit in year 6 and beyond is $0. at what marr would the company be indifferent between the two options Get the answer
Category: literature | Author: Hedda Galya