Question: A construction contractor needs to decide on the construction project procurement method. In the first phase of a project, the contractor has to assess some
A construction contractor needs to decide on the construction project procurement method. In the first phase of a project, the contractor has to assess some options available for outsourcing material for constructing a power plant. These options include outsourcing from an overseas seller or a USbased seller. Now there are some potential outcomes associated with each option. Both options of US and overseas sellers have their risks and benefits. A USbased seller would have a success chance of and there would be a profit of almost $ If it is not successful, the contract will lose $ The overseas seller has a chance of success, there would be a profit of $ If it is not successful, the contract will lose $
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