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Your factory produces automotive Original Equipment Manufacturer (OEM) components for after-market segment (Figure 4.2). Your products were sold at conventional store, workshop etc. and depending on l

Your factory produces automotive Original Equipment Manufacturer (OEM) components for after-market segment (Figure 4.2). Your products were sold at conventional store, workshop etc. and depending on local customer’s awareness. To boost the sales, your company review the possibility of using online-shopping as one of the medium to attract new and potential customer. Early assessment indicates $100000 earlier investment to develop and integrate the platform, and $20000 expenses for product awareness and commercial yearly. Your marketing department estimates a sale of 40% from earlier investment in the first year. Then after successful customer awareness, the sales will increase to 75% yearly from earlier investment in 2nd, 3rd and 4th year. After that the product will become saturated loss its attractiveness. The most the product can be sell is expected to be 10% of earlier investment. Based on cash flow diagram, analyse the relevant of the deal

Apr 20 2021 View more View Less

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