Problem regarding the product introduction

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Reference no: EM131007265

Product introduction

A small company has the technol- ogy to develop a new personal data assistant (PDA), but it worries about sales in the crowded market. They estimate that it will cost $600,000 to develop, launch, and market the product. Analysts have produced revenue estimates for three scenarios: If sales are high, they will sell $1.2M worth of the phones; if sales are moderate, they will sell $800,000 worth; and if sales are low, they will sell only $300,000 worth. Construct a payoff table for this set of actions using net profit as the "payoff." Don't forget the possible action of doing nothing.

Reference no: EM131007265

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