5. The company that you manage has invested
$5 million in developing a new product, but the
development is not quite finished. At a recent
meeting, your salespeople report that the intro-
duction of competing products has reduced
the expected sales of your new product to
$4 million. If it would cost $3 million to finish
development and make the product, should
you go
ahead and do so? What is the most that
you should pay to complete development?
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