Question: Urgent please Question 1 9 0 pts A semiconductor company recognizes that there is shortage in chip supply and decides to build a new plant
Urgent please
Question
pts
A semiconductor company recognizes that there is shortage in chip supply and decides to build a new plant to meet the increasing demand. They have to to make a decision whether they should build a big plant or starts with a small one and expands the plant after years if the demand is remaining high The decision will be made based on projected net cash flow generated in years from various probable outcomes.
The assumptions:
Probably for High Average Demand: ; for low average demand :
The cash flow the company is able to make:
Big Plant: a High Demand yield $ annually,
b Low Demand yield $ annually
Small Plant:
With initial high demand: $ yr for year & years; after years:
Expand Plant: c High Demand, $ yr from yr to for years;
d Low Average Demand: $yr for years low efficiency
No change in plant: e: High Demand: $ yr for years; f Low Demand: $ yr for years With initial low demand: :$ for years
Investment Cost for building the plant: A large plant: $; B small plant: $; C expand plant: $
a High Average Demand
yr for
Use decisiontree calculation to answer the following six questions after this one, no answer is needed for this, you can enter NA for this:
Initial Low Demand,
g Initially Low Demand
Use decisiontree calculation to answer the following six questions after this one, no answer is needed for this, you can enter NA for this:
Partial credit if calculation formula is correct but correct answer missed.
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