A company is developing a new website that will allow customers to track the progress of their… 1 answer below »
A company is developing a new website that will allow customers to track the progress of their orders. The web site developers charge €10,000 for every development week and it is estimated that the design will take ten weeks from the start of the design project to the launch of the website. Once launched, it is estimated that the new site will attract extra business that will generate profits of €5000 per week. However, if the website is delayed by more than five weeks, the extra profit generated would reduce to €2000 per week. How will a delay of five weeks affect the time when the design will break even in terms of cash flow?
