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Superior Products Inc. is considering two potential equipment alternatives for production of their best selling product line. Option 1 involves proven equipment: Fixed cost investment of $800,000 Variable cost of $45/unit. Option 2 involves developmental technology: Fixed cost investment of $1,200,000 Variable cost of $30/unit. 1. The marketing department has made the following sales estimates: Favorable: 40,000 units sold at $80/unit with a 60% probability. Unfavorable: 15,000 units sold at $80/unit with a 40% probability. Draw a decision tree and calculate the Expected Monetary Value (EMV). Which Option would you recommend based on this decision tree analysis? Please show work. 2.The Finance Division agrees with the sales estimates of the Marketing Division. However, Finance would like some sensitivity analysis include by using the following probabilities: Favorable: 40,000 units sold at $80/unit with a 30% probability. Unfavorable: 15, 000 units sold at $80/unit with a 70% probability. Do not redraw the Decision Tree. Would these new probabilities change your recommendation? Why or Why not? Please show your work.
How can a wireless network compensate for fading and delay?
Strategy Highlits 11.2 dicusses the informal oranizational structure of W.L.Gore and Associates. Go to the firm's Website (www.gore.com) and review the scope of the firm. a. Wha
Solve for x: log_10?x=3 5. You've earned your degree and have been hired by an established company. You were able to negotiate a beginning salary of $2500 per month with annual 6%
Explain Productivity in terms of management. Productivity may be defined as the ratio in between output and input. Output implies the amount produced or the no. of items prod
1. If, instead, a constant sample size of 100 is chosen, determine the np-chart control limits. A later sample produces 15 defectives: what conclusion can be drawn? 2. 1000 bot
Public sector unions now account for more than half of union members, while the private sector accounts for less than half. Why has this change occurred?
Determine how you would leverage the support provided by the U.S. Small Business Administration in planning and starting your own business. Provide specific examples to support you
How are different evaluation or rewards systems a source of conflict?
In e-mails writers sometimes use abbreviations such as FYI(for your information), ASAP(as soon as possible). Others writers sometimes use LOL (laughing out loud), 4 u(for you), gr9
Corruption and bribery are common in some countries. Would you simply avoid locating in such a country, or locate there and deal with it? If the latter, how would you deal with it?
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