Question: CASE: Aerocomp is in the busines of computing and computers. Aerocomp wants to diversify its business. Aerocomp has made decent money in the recent past.

CASE: Aerocomp is in the busines of computing and computers. Aerocomp wants to diversify its business. Aerocomp has made decent money in the recent past. John Christer, CEO of Aerocomp has informed the Board of Director of Aerocomp that the company has extra cash of about $2.5 million. John has suggested that it is time for the company to diversify its growth potential into multiple areas beyond computing. Mark Zuber, the executive assistant to the CEO of Aerocomp, has proposed three alternative investments which are described as under

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