Suppose the purchase price is $1.6 billion. Consider the following scenario: the realisation of value from Charlotte Mill is uncertain. Assume that with probability you can realise the estimated value. And that with probability it is not possible to realise any value. If you could hire an expert consultant to learn for certain whether the value from the acquisition can be realised, what is the maximum fee that you would be willing to pay the consultant for this service?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Suppose the purchase price is $1.6 billion. Consider the following scenario: the realisation of value from Charlotte Mill is uncertain. Assume that with probability you can realise the estimated value. And that with probability it is not possible to realise any value. If you could hire an expert consultant to learn for certain whether the value from the acquisition can be realised, what is the maximum fee that you would be willing to pay the consultant for this service?

 

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