Question: Michael is thinking about purchasing a soft drink machine and placing it in a business office. He knows that there is a 8 . 5
Michael is thinking about purchasing a soft drink machine and placing it in a business office. He knows that there is a percent probability that someone who walks by the machine will make a purchase from the machine, and he knows that the profit on each soft drink sold is $ If Michael expects people per day to pass by the machine and requires a complete return of his investment in one year, then what is the maximum price that he should be willing to pay for the soft drink machine? Assume working days in a year, and ignore taxes and the time value of money.
Maximum price
$
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