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I have a restaurant, but I don't know what demand will be next year. I need to decide whether to expand or not. Regardless of whether I expand or not, there's a 20% chance that I'll have high demand and a 80% chance I'll have low demand. If I expand and I have high demand, I'll get $1M. If I expand and get low demand, I'll make $0. If I don't expand and get high demand, I'll get $200K. If I don't expend and get lo demand, I'll make $100K. What is the expected value of expanding. Answer roudned to the nearest thousand of dollars, so if your asnwer is 434,300, answer 434000. I have a restaurant, but I don't know what demand will be next year. I need to decide whether to expand or not. Regardless of whether I expand or not, there's a 20% chance that I'll have high demand and a 80% chance I'll have low demand. If I expand and I have high demand, I'll get $1M. If I expand and get low demand, I'll make $0. If I don't expand and get high demand, I'll get $200K. If I don't expend and get lo demand, I'll make $100K. What is the expected value of NOT expanding. Answer roudned to the nearest thousand of dollars, so if your asnwer is 434,300, answer 434000.

I have a restaurant, but I don't know what demand will be next year. I need to decide whether to expand or not. Regardless of whether I expand or not, there's a 20% chance that I'll have high demand and a 80% chance I'll have low demand. If I expand and I have high demand, I'll get $1M. If I expand and get low demand, I'll make $0. If I don't expand and get high demand, I'll get $200K. If I don't expend and get lo demand, I'll make $100K. What is the expected value of expanding. Answer roudned to the nearest thousand of dollars, so if your asnwer is 434,300, answer 434000. I have a restaurant, but I don't know what demand will be next year. I need to decide whether to expand or not. Regardless of whether I expand or not, there's a 20% chance that I'll have high demand and a 80% chance I'll have low demand. If I expand and I have high demand, I'll get $1M. If I expand and get low demand, I'll make $0. If I don't expand and get high demand, I'll get $200K. If I don't expend and get lo demand, I'll make $100K. What is the expected value of NOT expanding. Answer roudned to the nearest thousand of dollars, so if your asnwer is 434,300, answer 434000.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 45P: A project does not necessarily have a unique IRR. (Refer to the previous problem for more...
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  1. I have a restaurant, but I don't know what demand will be next year. I need to decide whether to expand or not. Regardless of whether I expand or not, there's a 20% chance that I'll have high demand and a 80% chance I'll have low demand.
    If I expand and I have high demand, I'll get $1M. If I expand and get low demand, I'll make $0. If I don't expand and get high demand, I'll get $200K. If I don't expend and get lo demand, I'll make $100K. What is the expected value of expanding. Answer roudned to the nearest thousand of dollars, so if your asnwer is 434,300, answer 434000.

  2. I have a restaurant, but I don't know what demand will be next year. I need to decide whether to expand or not. Regardless of whether I expand or not, there's a 20% chance that I'll have high demand and a 80% chance I'll have low demand.
    If I expand and I have high demand, I'll get $1M. If I expand and get low demand, I'll make $0. If I don't expand and get high demand, I'll get $200K. If I don't expend and get lo demand, I'll make $100K. What is the expected value of NOT expanding. Answer roudned to the nearest thousand of dollars, so if your asnwer is 434,300, answer 434000.
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