A company is considering starting a new line of business, Ask an Expert

Management Studies

A company is considering starting a new line of business. They plan to invest $1 million in the new business. A recent graduate in Project Management has offered to do a preliminary Expected Monetary Analysis based upon possible outcomes in the first year of operation. There is a probability of .25 that net revenues will be $400,000, .05 probability of net revenues of 2 million, and .70 probability of net revenues of $300,000. What is the expected monetary value of these outcomes in the first year of operation? Should the company proceed with this investment? Explain your recommendation.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93134932

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 as you reflect about organizational ethics what aspects

1. As you reflect about organizational ethics, what aspects do you feel are most difficult in organizations? Why do some people seem to not follow the rules? Can organizations really "teach" ethics? How tolerant should a ...

Empirical research methods for businessthis assignment

Empirical Research Methods for Business This assignment covers material from Sessions1-4 and is worth 20% of your total mark of BBS300. Your solutions should be properly presented, and it is important that you double-che ...

While society expects a business to be prepared for

While society expects a business to be prepared for disasters and to recover using its own resources, we do not seem to expect individuals to be prepared to survive a disaster. Should we expect government at any level to ...

Herzbergrsquos two-factor theory speaks to issues relevant

Herzberg’s two-factor theory speaks to issues relevant in both employee compensation and benefits as it discusses why people choose a workplace, as well as what keeps employees satisfied and committed to their work. For ...

External investors frequently require ldquofounders

External investors frequently require “Founders Stock” (i.e. equity owned by management pre-external investors) be subject to a “reverse vesting” schedule again over time and/or performance metrics. What is a “reverse v ...

1 how can we reduce work related injury and accident at a

1. How can we reduce work related Injury and accident at a company or workplace like Siemens by implementing “ sales and operations planning “ 2 paragraph or more thanks 2. How can having too much formatting detract from ...

This report is primarily intended to analyze and present

"This report is primarily intended to analyze and present the potential financial success and profitability of Zivago Private Limited, an online media portal which is proposed to be launched in the local market in Singap ...

1 what does the research evidence say about the three

1. What does the research evidence say about the three theories concerning the relationship between organizational culture and, performance. 2. A time standard was set at 5.50 hours per unit based on the 100th unit produ ...

Please read the case on page 1321 does the revised goal

Please read the case on page 132. 1) Does the revised goal meet the SMART criteria? If yes, explain why. If not, explain why and revise it so it does meet the criteria. 2) What can Doug do now to help his crew leaders be ...

Define a learning organization and find a current company

Define a Learning Organization and find a current company example that is utilizing a learning organizational style / organizational design (describe). Why are some companies finding it very important to sustainable succ ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert