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Carlton Has Developed a New Cell Phone That Projects onto a Surface

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Carlton has developed a new cell phone that projects onto a surface instead of having a screen;this permits the user to attach it to a stand or lean it on one surface and use the surface it projects onto for the screen.By eliminating the screen,it can be made watch-size and worn on the wrist,as a pendant on a necklace,attached to a set of keys,or carried comfortably in one's pocket.Because he is certain the demand for the product will be high,he is setting the highest possible price for the new product.What pricing strategy is he using?

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Definitions:

Present Values

A calculation that determines the present worth of a future sum of money or stream of cash flows, given a specified rate of return.

Technical Analysis

A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume.

Statistical Analysis

A method of collecting, reviewing, and interpreting data to discover patterns, correlations, or trends.

Present Value

It measures the current value of a future amount of money or stream of cash flows, using a specific discount rate to account for the time value of money.

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