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A company intends to market a new product and it estimates that there is a 20% chance that it will be first in the market

and this will give 2 million dollar revenue in its first year. However, if it is not the first in the market it will only be .5 million.

What is the EMV?

Respuesta :

azikennamdi

The EMV - Ending Market Value is given as:
$2,400,000.

How is the EMV Arrived At?

The EMV is given as:

BMV x (i + r); Where

BMV is the Beginning Market Value; and

r is the interest rateor percentage given.

Hence the EMV = 2,000,000 x ( 1 + 20%)

= 2,000,000 x 1.2

= $ 2, 400,000.

It is to be noted that the BMV is the Beginning Market Value which is the value of an investment at the start of the business period.

Learn more about Market Value at:

https://brainly.com/question/1350233

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