Needs to read in net present value. company needs to know, Ask an Expert

Management Studies

Juice Company is producing a new product line. The annual demand has the following probability distribution:

Annual Demand Probability
20,000 0.3
50,000 0.5
90,000 0.2

Each case of Juice sells for $5 and incurs a $3 Variable cost. it costs the company $800000 to build factory to produce this new Juice. Assume that $1 received every year forever is equivalent to receiving $10 now. Needs to read in Net present Value. Company needs to know whether to build the factory based on a pay off table and the following results:

a) Maximin and Maximax results
b) Minimax regret
c) Expected Value
d) Hurwicz (use 0.6)
d) Calculate Perfect Information

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M9271792

Have any Question?Write your Review or question?

Related Questions in Business Management

Case study questionsgojo industriesinstructions create

Case Study Questions GOJO Industries Instructions: Create bullet point answers for each question, for use in small group discussions next week. Also refer to the Porter and Kramer HBR article on Shared Value to help info ...

When applying industry analysis and organizational

When applying industry analysis and organizational structure determine when past industry performance is a good indicator of future profitability and when is it not a good indicator? and why, please explain the logic so ...

Bullhow could advertising be a barrier to entry could

• How could advertising be a barrier to entry? Could advertising reduce barriers to entry for a new product? • Presumably drug companies are trying to differentiate their products from the competition. Will consumers be ...

What should be done to maintain optimum stock levels and

What should be done to maintain optimum stock levels and why is it important to keep accurate and up-to-date records of stock?

The business model for jpmorgan chase was change in 2008

The business model for JPMorgan Chase was change in 2008. Could the upside of the strategy have been achieved without exposing JPMorgan Chase the bank?

How are the needs for affiliation intimacy and power

How are the needs for affiliation, intimacy, and power similar to and different from needs for inclusion, control and affection?

Use the following article to answer the questions how would

Use the following article to answer the questions. How would you go about encouraging diversity hiring and promotion at GlobeBank? Take the position as the Director of Diversity Recruiting and outline your plan. This pla ...

Describe the definition of ransomware and what is wannacry

Describe the definition of ransomware. And what is wannacry threat?

Long-term objectives are defined as the result a firm seeks

Long-term objectives are defined as the result a firm seeks to achieve over a specified period, typically five years. Any long-term objectives should be flexible, measurable over time, motivating, suitable, and understan ...

Ethics and the information security professionnbspwhat are

ETHICS AND THE INFORMATION SECURITY PROFESSION What are the ethical dilemmas and challenges faced by information security professionals? Are professional organizations' ethical codes of conduct beneficial as an informat ...

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 Business Management Expert