Question: Consider the example in Exhibit 5.5. Can you think of anything else you might do with that example that would be helpful to the ultimate
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exhibit 5.5 Decision Tree Analysis Using Net Present Value Calculations Strong growth Revenue-Move Cost$428.487 Move $310,613 Weak growth 0.450 Strong growth Revenue-Move Cost= $166,544 550 Revenue-Expansion Cos$535.1 16 Expand Hackers Computer Store $402.507 ca enue-Expansion Cost = $240,429 0450 Expand Revenue-Expansion Cost $529,874 Strong growth Do nothing: $556,630 0.550 nothin Do nothing. S400.857 Revenue $556,630 NPV Analysis Rate = 16% ; Weak growth 0450 Revenue $343,801
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