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Naily [24]
3 years ago
13

Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their produ

ct line. The company is currently considering two options. The first is a small facility that it could build at a cost of $7 million. If demand for new products is low, the company expects to receive $9 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $14 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $8 million. Were demand to be low, the company would expect $9 million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $13 million. In either case, the probability of demand being high is .30, and the probability of it being low is .70. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products.
a.
Calculate the NPV for the following: (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers in millions rounded to 1 decimal place.)

Plans NPV
Small facility $ million
Do nothing million
Large facility million
b. The best decision to help Expando is
to build the large facility.
to build the small facility.
to do nothing.
Business
2 answers:
Yuliya22 [10]3 years ago
4 0

Answer:

D

Explanation:

aleksandrvk [35]3 years ago
4 0

Answer:

B

Explanation:

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Answer:

why do people feel more compelled to work with a leader who demonstrates responsibility?

People feel more compelled to work with a leader who demonstrate responsibility because such leader leads by example as a matter of fact most people are always ready to work without being forced to as a result of act of willingness displayed by such leader

Explanation:

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_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.
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Cost-reimbursable contracts involve payment to the supplier for direct and indirect actual costs and often include fees.

A cost-reimbursable contract is an agreement between two parties called the contractor and the owner. Here the contractor gets the reimbursement for the cost incurred while carrying out the work as per the contract, and also gets an additional fixed fee from the company or an owner.

Here the final pricing of the contract is determined later based on the underlying deal and the actual costs it took to complete a project given to the contractor.

Hence, cost-reimbursable contracts involve payment for direct and indirect actual costs.

To learn more about cost-reimbursable here:

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7 0
1 year ago
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postnew [5]

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5 0
3 years ago
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ahrayia [7]

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The answer is A.

Explanation:

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8 0
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lara [203]

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<span /></span>
3 0
2 years ago
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