Question Details

(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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Sep 13, 2020

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