Question: Exercise #1: (Worth 9 points) John Doe is the owner of Co. XYZ, Inc. (a gas station). After leaving his university teaching job, he has

Exercise #1: (Worth 9 points) John Doe is the owner of Co. XYZ, Inc. (a gas station). After leaving his university teaching job, he has been able to increase his annual salary by a factor of over 100. Currently, John Doe is forced to consider purchasing more equipment for his company due to existing competition. His alternatives are presented in the following table: Equipment Favorable Market ($) Unfavorable Market ($) Sub 100 $300,000- $200,000 Oil Pump J $250,000- $100,000 Texas $75,000- $18,000 a. What type of decision is John Doe facing? b. What decision criterion should he use? c. Which is the best alternative?

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