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(solution) you are considering opening a designer shoe store at The Summit.
you are considering opening a designer shoe store at The Summit. Available space allows you the possibility to build a large store, a smaller store, or no store at all. Here is the table:
States of Nature
Alternatives Good Economy Fair Economy Poor Economy
Large Shop $90,000 $40,000 -$40,000
Small Shop $65,000 $28,000 -$25,000
Do Nothing 0 0 0
Probabilities 40% 30% 30%
What is the EOL amount?
a. $8,000
b. $12,000
c. $36,000
d. $49,000
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DATE ANSWEREDSep 13, 2020
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