Considering the following decision tree, what is the EV atnode 3?Assume the payoffs are COST values. **Enter thenumber only** P(F) = 0.6 P(U) = 0.4 P(s1 | F) = 0.75 P(s1 |U)=0.55 P(s2 | F) = 0.25 P(s2 | U) = 0.45 P(s1) = 0.7 P(S2) =0.31MarketResearchNo MarketResearchF**Enter the number only**d₂2d₂(10)5₁5₂5₁5₂45₂5₁SBOYS₁100300400200100300400200100300400200

Here, the prior probabilities and posterior probabilities are given.Prior Probability:Posterior…

Answered: Considering the following decision…

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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Lake Stevens Marina has estimated that fixed costs per month are $350,000 and variable cost per dollar of sales is $0.30 . The selling price per dollar of sales is: $1.00 Determine the effect on the break-even point in sales dollars considering each of the following independently. 1. Total fixed costs increase to $365,000. Break-even point = ÷ = 2. Variable costs decline to $0.25 per sales dollar. Break-even point = ÷ = 3. The anticipated sales volume increases to $1,100,000. Break-even point = ÷ = Comment on the BEPs from the above analyses in questions 1,2,3.
10.4 The staff of Jefferson Medical Services has estimated the following net cash flows for a food services operation that it may open in its outpatient clinic: Year Expected Net Cash Flow 0 ($100,000) 1 30,000 2 30,000 3 30,000 4 30,000 5 30,000 5 (salvage value) 20,000 The time 0 cash flow is the net investment outlay, while the final amount is the terminal cash flow. (The clinic is expected to move to a new building in five years.) All other flows represent net operating cash flows. Jefferson’s corporate cost of capital is 10 percent. What is the project’s IRR? Assuming the project has average risk, what is its NPV? Now, assume that the operating cash flows in years 1 through 5 could be as low as $20,000 or as high as $40,000. Furthermore, the salvage value cash flow at the end of year 5 could be as low as $0 or as high as $30,000. What are the worst-case and best-case IRRs? The worst-case and best-case NPVs?
Answer the following questions based on the Strategy Region graph given below. The objective is to maximize the expected value. Support your answer. • If grant award is $50,000, what is the EV of the optimal strategy? • If grant award is above approximately $57,000, what is the optimal strategy?
Emerson Electric is considering the purchase of equipment that will allow the company to manufacture a new line of wireless devices for home appliance control. The first cost will be $80,000 and the life estimated is 6 years with a salvage value of $10,000. Three different salespeople have provided estimates regarding the added revenue the equipment will generate. Salespersons 1,2, and 3 have made estimates of $10,000 , $16,000 , and $18,000 per year respectively if the Companys MARR is 8% per year find the PW of each salespersons estimates.
The table shows the hypothetical trade-off between different combinations of Stealth Bombers and B-1 Bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus. Production Possibilities for Bombers Combination Number of B-1 Opportunity Cost (Foregone Stealth) S T 0 NA Number of Stealth 10 Opportunity Cost (Foregone B-1) 1 9 U V 2 3 In the production range of 7 to 9 Stealth bombers, the opportunity cost of producing 1 more Stealth Bomber in terms of B-1 Bombers is 7 4 NA Multiple Choice 0. 3. 0.5. 2.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
pls answer the 2nd question: The Montemar Company is considering contracting with a market research firm to do a survey to determine future market conditions. The results of the survey will indicate either positive or negative market conditions. There is a 0.60 probability of a positive report, given favorable conditions; a 0.30 probability of a positive report, given stable conditions; and 0.10 probability of a positive report; given unfavorable conditions. There is a 0.90 probability of negative report, given unfavorable conditions; a 0.70 probability given stable conditions; and a 0.40 probability, given favorable conditions. d & e, as per the guidelines
Your town is considering updating one of the local parks. They created a linear program that had the following constraints: 1. Spend no more than $100,000 2. Spend no more than $50,000 on new playground equipment 3. Put in at least three basketball courts After running the linear program, the town saw that the program was infeasible. The town has decided to make constraints 1 & 2 goals, instead of hard constraints. How many decision variables would need to be added to the town's linear program, in order to turn it into a goal program with two soft constraints that allow deviation in both directions?
1
Kathy receives her real estate license. Within a month of receiving her license, she gets a new job offer she can't refuse. She decides to continue to hold her license but not practice, do any real estate work, or collect any referrals at this time. She is willing to renew her license, do her continuing education, and pay the renewal fee for her license. What should Kathy do? ○ Opt not, renew her license or complete the educational requirements ○ Seek a voluntary inactive license. Seek an involuntary inactive license. Seek a broker who will not be upset if she does not work too hard.
Problem 2. An electric switch manufacturing company has to choose one of three different assembly methods. Method A will have first cost of $ 40,000, an annual operating cost of $9,000 and a service life of 2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6,000 over its 4 year service life. Method C will cost $130,000 initially with an annual operating cost of $4,000 over its 8-year life. Methods A and B will have no salvage value, but method C will have some equipment worth an estimated $12,000. Which method should be selected? Use present worth analysis at an interest rate of 10% per year.
Quorex is evaluating two mutually exclusive projects. Project A has a net investment of $50,000 and net cash flows over a six-year period of $13,000 per year (NOTE: that project requires a reinvestment with the same cost and cash flow for another six years). Project B has a net investment of $48,500, but its net cash flows of $8,740 per year will occur over a 12-year period. If Quorex has a cost of capital of 14% for these projects, which project, if either, should be chosen, and what is its NPV?

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