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Sentosa Company is considering launching a new product which it believes has a 70% probability...

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Accounting

Sentosa Company is considering launching a new product which it believes has a 70% probability of success. The company is, however, considering undertaking an advertising campaign costing N$60 000, which would increase the probability of success to 95%. If successful, the product would generate income of N$240 000, otherwise N$84 000 would be received. What is the maximum amount that the company should be prepared to pay for advertising?

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