Determine the probability that the following tree reflecting demand for a product, given an expense of acquiring the necessary equipment of $100k, has a rate of return higher than 30% per year. 4. Sales: $27k/yr 4 yr (2) Sales: $26k per year with a $35k overhaul in yr 4 Decide Low demapd p=0.35 $100k acquisition cost High demand p=0.65 Sales $45k/yr 10 x Decide 12 yrs Sales $35k per year with a $35k overhaul in yr 6

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Determine the probability that the following tree reflecting demand for a product, given an expense of
acquiring the necessary equipment of $100k, has a rate of return higher than 30% per year.
4.
Sales: $27k/yr
4 yr
(2)
Sales: $26k per year with a $35k overhaul in yr 4
Decide
Low demapd p=0.35
$100k acquisition cost
High demand p=0.65
Sales $45k/yr
10 x
Decide
12 yrs
Sales $35k per year with a $35k overhaul in yr 6
Transcribed Image Text:Determine the probability that the following tree reflecting demand for a product, given an expense of acquiring the necessary equipment of $100k, has a rate of return higher than 30% per year. 4. Sales: $27k/yr 4 yr (2) Sales: $26k per year with a $35k overhaul in yr 4 Decide Low demapd p=0.35 $100k acquisition cost High demand p=0.65 Sales $45k/yr 10 x Decide 12 yrs Sales $35k per year with a $35k overhaul in yr 6
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