A smartphone manufacturer invests €20 million in developing a new phone design and 3D interface, but the development is not quite finished. At a recent meeting, your sales people report that a rival...

A smartphone manufacturer invests €20 million in developing a new phone design and 3D interface, but the development is not quite finished. At a recent meeting, your sales

people report that a rival has just released a new phone

which is estimated to reduce the expected sales of your

new product to €12 million. If it would cost €4 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? Explain your answer.