Question: Question 4: (18 marks) (C2, C3) Part A: (6 marks) A company wishes to go ahead with one of three mutually exclusive projects, but

Question 4: (18 marks) (C2, C3) Part A: (6 marks) A company wishes to go ahead with one of three mutually exclusive projects, but

Question 4: (18 marks) (C2, C3) Part A: (6 marks) A company wishes to go ahead with one of three mutually exclusive projects, but the profit outcome from each project will depend on the strength of sales demand, as follows. Strong demand Moderate. Weak demand profit demand profit profit (loss) $ $ $ Project 1 70,000 10,000 (7,000) Project 2 25,000 12,000 5,000 Project 3 50,000 20,000 (6,000) Probability of demand 0.1 0.4 0.5 Instructions: What is the value to the company of obtaining this perfect market research information, ignoring the cost of obtaining the information?

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