The business products division has a business proposal asking for $ 50 million, designed to finance the creation of a new telephone system for small and medium businesses. The company last entry in this market lost $ 70 million. The new product would face 100 competitors in a market believed that his zero growth. If the proposal is accepted investment?

The business products division has a business proposal asking for $ 50 million, designed to finance the creation of a new telephone system for small and medium businesses. The company last entry in this market lost $ 70 million. The new product would face 100 competitors in a market believed that his zero growth. The investment proposal should be accepted?
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from
Robert J. Dolan
Source: Harvard Business School
13 pages.
Release Date: 12 April 1993. Prod #: 593103-PDF-ENG
Northern Telecom (A): Greenwich participation HBR case solution

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