Calculate the EVPI. Show clear workings piease Cost Either 0 or 1 Failiure SO Leave the plant open 0.736 E(cost)=$3960 2 or more Failures $15,000 0.264 Close the plant $10,000

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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Calculate the EVPI. Show clear workings please
Cost
Either 0 or 1 Failiure
SO
Leave the plant
open
0.736
E(cost)=$3960
2 or more Failures
$15,000
0.264
Close the plant
$10,000
Transcribed Image Text:Calculate the EVPI. Show clear workings please Cost Either 0 or 1 Failiure SO Leave the plant open 0.736 E(cost)=$3960 2 or more Failures $15,000 0.264 Close the plant $10,000
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