The ABC contractor has been asked to submit a proposal for developing a new product. The cost of bid preparation is PhP 10,000.00. If ABC submits the proposal, the chances are 60-40 that the bid will be accepted. It is not certain that the product can actually be developed, but there are two (2) methods of development. Method I will cost PhP 120,000.00 and has 75% chance of success. Method II will cost PhP100,000.00 and the profitability success is 45%. If the product is developed, the contract must decide whether to advertise or not. If advertised, the return will be PhP 1,600,000.00; if not, the return will be PhP1,000,000.00. Should ABC prepare a proposal?
The ABC contractor has been asked to submit a proposal for developing a new product. The cost of bid preparation is PhP 10,000.00. If ABC submits the proposal, the chances are 60-40 that the bid will be accepted. It is not certain that the product can actually be developed, but there are two (2) methods of development. Method I will cost PhP 120,000.00 and has 75% chance of success. Method II will cost PhP100,000.00 and the profitability success is 45%. If the product is developed, the contract must decide whether to advertise or not. If advertised, the return will be PhP 1,600,000.00; if not, the return will be PhP1,000,000.00. Should ABC prepare a proposal?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:The ABC contractor has been asked to submit a proposal for developing a new product.
The cost of bid preparation is PhP 10,000.00. If ABC submits the proposal, the chances are
60-40 that the bid will be accepted. It is not certain that the product can actually be
developed, but there are two (2) methods of development. Method I will cost PhP 120,000.00
and has 75% chance of success. Method I will cost PhP100,000.00 and the profitability
success is 45%. If the product is developed, the contract must decide whether to advertise
or not. If advertised, the return will be PhP 1,600,000.00; if not, the return will be
PhP1,000,000.00. Should ABC prepare a proposal?
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