Question: please answer the question by 10:30 pm toinght U Login Page QUESTIONS Question Completion Status You have joined a company that plans to build a
please answer the question by 10:30 pm toinght
U Login Page QUESTIONS Question Completion Status You have joined a company that plans to build a new factory. Your employers must decide whether to build a small or a large plant at a new location Decind at the location can be either low or high, with probabilities estimated to be 0.4 and 0.6, respectively. If a small plant is built, and demand is high, the production manager may choose to maintain the current size or to expand. The net present value of profits is $223,000 if the firm chooses not to expand. However, if the firm chooses to expand, there is a 50% chance that the net present value of the returns will be 330,000 and a 50% chance the estimated net present value of profits will be $210,000 If a small facility is built and demand is low, there is no reason to expand and the net present value of the profits is $200,000. However, if a large facility is built and the demand turns out to be low, the choice is to do nothing with a net present value of $40,000 or to stimulate demand through local advertising. The response to advertising can be either modest with a probability of 3 or favorable with a probability of 7. If the response to advertising is modest, the net present value of the profits is $20,000. However, if the response to advertising is favorable, then the net present value of the prolits is $220,000. Finally, if the large plant is built and the demand happens to be high, the net present value of the profits $800,000 The decision tree has been drawn for you by a fellow worker. It is below. low demand do nothing 40,000 Large plant hw 4 advertise B high demand 0.3 modest response F D favorable G Small plant H high demand maintain size expand 0.4 0.5 high return Click Save and Submit to save and submit. Click Save All Answers to save all answers, Save All Answers Question Completion Status expand 0.4 low demand 0.5 high retum E low return Give the values of A through E to one decimal place, A= B- CL E! Give the values F through J with no decimals. FE G H= 1 = J = Click Satie and Submit to see and subit. Click Save Alansiters to save all answers, QUESTION * Question Completion Status You have joined a company that plans to build a new factory Your employers must decide whether to build a small or a large plantat a new location Demand at me location can be either low or high, with probabilities estimated to be 04 and 0.6, respectively. If a small plant is built and demand is high, the production manager may choose to maintain the current size or to expand. The net present value of protes is $223,000 if their chooses not to expand. However, if the firm chooses to expand there is a 50% chance that the net present value of the returns will be 330.000 and a 50% chance the estimated net present value of profits will be $210.000. If a small facility is built and demand is low, there is no reason to expand and the net present value of the profits is $200,000. However, if a large facility is built and the demand turns out to be low, the choice is to do nothing with a net present value of $40,000 or to stimulate demand through local advertising. The response to advertising can be either modest with a probability of 3 or favorable with a probability of 7. If the response to advertising is modest, the net present value of the profits is $20,000. However, if the response to advertising is favorable, then the net present value of the profits is $220,000. Finally, if the large plant is built and the demand happens to be high, the net present value of the profits $800,000 The decision tree has been drawn for you by a fellow worker. It is below low demand do nothing 40,000 Large plant advertise 0.3 modest response F B high demand D favorable G Small plant H high demand maintain size expand 0.5 high return 0.4 low demand E low return 210,000 Click Save and submit to save and submit. Click Save All Answers to save all answers Save All Answers high demand maintain size expand 0.4 low demand 0.5 high return E low return 210,000 200,000 Give the values of A through E to one decimal place. A= B- CE D E Give the values F through J with no decimals. G HE = Click and submit to save and the chicksters to save all as