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Endius Case study URL : https://brainmass.com/file/245803/endius.pdf Using the E

ID: 2445590 • Letter: E

Question

Endius Case study URL : https://brainmass.com/file/245803/endius.pdf

Using the Endius Inc.: Alternatives for Developing a New Medical Device case, could you help me answer these questions:

1. Assume that Tom Davison is willing to loan Endius the cash to cover the initial product development costs regardless of whether Endius chooses in-house develop- ment or outsourced product development with Product Genesis Inc. Contrast the cost to Endius of accepting the Product Genesis proposal with the cost of develop- ing the steerable forceps in-house. For the in-house alternative, what would it cost if it takes eight months to develop the prod- uct? 10 months? 14 months?

Explanation / Answer

Ans) Endius has choose two product one hourse-development or outsourced product development and it is ignored the whether and it is too risky because whether will influence the above two product. And one more factor we have to consider is time value of the project if the time lent of the project is increasing then the company cost will increase and cost of capital also increase so better to consider the Risk and Cost of Capital we can finalize the answer.