A friend of friend has asked them to do the turf revitalization $($feed and weed treatment of existing lawn$)$ of a $10-$hectare remote golf course at the price of $$10$ per square meter $($m$2)$ of treated lawn $($the lawn should be treated and healthy before the golf course pays$).$ They have two choices for this contract: a$)$ to do the job themselves and b$)$ to subcontract the job to a local landscaper at the cost of $$6/$m$2.$ Because the machinery they have does not yield the even lawn surface that is suitable for golf course, they need to purchase special equipment for this contract. Two models of these equipment are available $($All$-$auto, and Bi$-$cycle$).$ The All$-$auto model can be purchase for $$120,000$ and can do the job at the cost of $$4/$m$2$ and the Bi$-$cycle model can do the jo at the cost of $$5/$m$2$ but can be purchased for $$100,000.$ Whether they take the job or subcontract it$,$ the weather condition $($precipitation$,$ humidity and temperature$)$ plays a significant role. If the weather cooperates, there is $50\%$ chance that all the $10$ hectares $(100,000$ m$2)$ can be delivered. However, there is $50\%$ chance that it does not in which case half of golf course will be treated.

Question : Show Bill all his options and advise him which one would be the best for him.?

Answer rating: 100% (QA)

To analyze the options available to Bill lets break down the costs and potential outcomes Option 1 D... View the full answer