Ques:- Suppose you are working for a leading manufacturer of electronic equipment for industrial customers. The R&D department has developed a new product — a device that could replace all energy costs (electric, gas, etc.) using solar technology. The estimated price to the customer would be 15 lakh per house, with a payback period of 3 to 5 years. The R&D department says the estimated investment is 600 crore. What is your opinion?
Asked In :-
Aranca (Mumbai), Aakit Technologies, Born Commerce, Namecheap Web Services, Cyber Group India, E2E Networks, MedGenome Labs, Target Integration, Travanleo Info Solutions India, Raykor Technologies,
Right Answer:
The investment of 600 crore seems high compared to the potential revenue from selling the product at 15 lakh per house. To assess viability, we need to calculate the break-even point and consider market demand, competition, and potential barriers to adoption. If the market is large enough and the product is competitive, it could be a worthwhile investment; otherwise, it may pose significant financial risks.