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14. Given the following sequential decision tree, determine which is the optimal investment, A or B: 40 $300,000 (-$20,000) 7 30 .60 $60,000 $45,000 Investment A .70 $75,000 20 $200,000 (-S70,000) (-$17,000) 80 $70,000 $60,000 .15 35 $105,000 (-$9,000) .65 $40,000 Investment B (-$50,000) .55 3 $55,000 .30 $80,000 2.

14. Given the following sequential decision tree, determine which is the optimal investment, A or B: 40 $300,000 (-$20,000) 7 30 .60 $60,000 $45,000 Investment A .70 $75,000 20 $200,000 (-S70,000) (-$17,000) 80 $70,000 $60,000 .15 35 $105,000 (-$9,000) .65 $40,000 Investment B (-$50,000) .55 3 $55,000 .30 $80,000 2.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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14. Given the following sequential decision tree, determine which is the optimal investment, A or B: .40 $300,000 (-$20,000) 7 .60 $60,000 .30 2 $45,000 Investment A .70 $75,000 20 $200,000 (-$70,000) (-$17,000) .80 $70,000 5 $6,000 .15 35 $105,000 (-$9,000) Investment B (-$50,000) .55 .65 $40,000 3 $55,000 .30 $80,000
Transcribed Image Text:14. Given the following sequential decision tree, determine which is the optimal investment, A or B: .40 $300,000 (-$20,000) 7 .60 $60,000 .30 2 $45,000 Investment A .70 $75,000 20 $200,000 (-$70,000) (-$17,000) .80 $70,000 5 $6,000 .15 35 $105,000 (-$9,000) Investment B (-$50,000) .55 .65 $40,000 3 $55,000 .30 $80,000
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