Question: Large or Small problem - build a large or small restaurant. Which has the highest expected NPV (P = Probability)? $26,000 High P(High Demand) =

Large or Small problem - build a large or small

Large or Small problem - build a large or small restaurant. Which has the highest expected NPV (P = Probability)? $26,000 High P(High Demand) = 0.60 Large P(Low Demand) = 0.40 Low $15,000 $24,000 High Small Low $19,000

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