Go to market now = $ 24,300,000
Test Marketing First = $ 26,880,909
Explanation;
A) NPV = $33,100,000 × .60 + $11,100,000 × .40
NPV = $ 19,860,000 + $4,440,000
= $ 24,300,000
B. NPV = -$1210,000 + [$33,100,000 × (.90) + $11,100,000 ×(.10)] /1.10
NPV = -$1210,000 + [$29,790,000 + $11,10,000]/1.10
NPV = -$1210,000 + $30,900,000/1.10
=-$1210,000 + $28,090,909
= $26,880,909
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