Between and , the u. s. dollar ______ against the canadian dollar. between and , the u. s. dollar _____

The probability of low demand is estimated to be 0.20. The after-tax net present value of the benefits from purchasing the two m

kondaur [170]

Answer: a)The decision tree is attached as a document to this question.

b)$140000

Here is the complete question:

. A manager is trying to decide whether to buy one machine or two. If only one is purchased and demand proves to be excessive, the second machine can be purchased later. Some sales will be lost, however, because the lead time for purchasing this type of machine is 6 months. In addition, the cost per machine will be lower if both are purchased at the same time. The probability of low demand is estimated to be 0.20. The after-tax net present value of the benefits from purchasing the two machines together is $90,000 if demand is low and $180,000 if demand is high.

If one machine is purchased and demand is low, the net present value is $120,000. If demand is high, the manager has three options. Doing nothing has a net present value of $120,000; subcontracting, $160,000; and buying the second machines, $140,000.

a. Draw the decision tree for this problem.

b. Use the decision tree to determine how many machines the company should buy initially and give the expected payoff for this alternative.

Explanation:

Concepts and reason

The expected value of perfect information (EVPI)= EPPI - EP

(EPPI) =expected payoff with perfect information

(EP)= maximum expected payoff computed under uncertainty.

Fundamentals

The expected payoff = P₁X₁ + P₂X₂ +....PnXn,

The formula for the expected payoff is, E(X) = ΣxΡ(x)

Suppose you have a set of corresponding probabilities for playing your pure strategies = Pn

where the probabilities must all be greater than or equal to zero and they all sum to one.

b) the values at node 4 = $120000, $140000 and $160000

EV =maximum(node4)

=max($120000, $140000 , $160000)

=$140000

expected payoff at node 4 = $140000

3 0

2 years ago

John is an investor who is looking at two opportunities. One has higher risk than the other. John is willing to invest in the hi

harina [27]

Answer:

B. As a risk-averse investor

Explanation:

B. As a risk-averse investor is a correct option . Risk-averse investors can invest in higher risk opportunity only if it offers higher expected return .

4 0

3 years ago

Mickey is a 12-year-old dialysis patient. Three times a week for the entire year he and his mother, Sue, drive 20 miles one way

gavmur [86]

Answer:

The right approach will be "$ 1123.2".

Explanation:

The number of miles to be used will be:

= $40 \ miles \ round \ trip\times 3 \ trips \ per \ week\times 52 weeks$

= $6240 \ miles$

Now,

The item deduction will be:

= $Number \ of \ used \ miles\times 18 \ cents \ per \ mile$

= $6240\times 1123.2$

= $1123.2$ ($)

4 0

2 years ago

Schwan's Sales Enterprises of Marshall, Minnesota, manufactures and markets a full line of frozen foods in 49 states using door-

xxTIMURxx [149]

Available options are:

A. direct channel.

B. indirect channel.

C. facilitated channel.

D. customer-service channel.

E. truck jobber channel.

Answer:

A. Direct channel.

Explanation:

The use of direct channel is prominent in the ice-cream industry which sales its products by using a music which triggers the sense that the ice-cream is just at my next step and the products at offers are from low cost to high cost to make maximum sales. The type of channel in which the salesmen sell their product by moving door to door is often refferred to as Direct channel.

3 0

3 years ago

Robinson Manufacturing found the following information in its accounting records: $ 519 comma 800 of direct materials used, $

Damm [24]

Answer:

Cost of good manufactured= $1507100

Explanation:

To calculate the cost of manufactured goods we need to use the following formula:

Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress

Beginning work in progress= 72400

Direct materials = beginning inventory + purchase - ending inventory= 519800

Direct labor= 226700

Manufactured overhead= 775800

Ending work in progress= 87600

Cost of good manufactured= 72400 + 519800 + 226700 + 775800 - 87600= $1507100

5 0

3 years ago

Between and , the u. s. dollar ______ against the canadian dollar. between and , the u. s. dollar ______ against the

Between and , the u. s. dollar against the canadian dollar. between and , the u. s. dollar against the