Business, 21.02.2020 23:51 kashaallen492

MacDonald Products, Inc., of Clarkson, New York, has the option of proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or having the value analysis team complete a study. If Ed Lusk, VP for operations, proceeds with the existing prototype (option a), the firm can expect sales to be 90,000 writs at $540 each with a probability of 0.32 and a 0.68 probability of 80,000 at $540. If, however, he uses the value analysis team (option b), the firm expects sales of 90,000 units at $750, with a probability of 0.75 and a 0.25 probability of 60,000 units at $750. Value engineering at a cost of $95,000, is only used in option b.

Which option has the highest expected monetary value (EMV)?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 00:30

How did lani lazzari show her investors she was a good investment? (site 1)

Answers: 3

Answer

Business, 22.06.2019 11:50

The following are the current month's balances for abc financial services, inc. before preparing the trial balance. accounts payable $ 10,000 revenue 6,000 cash 3,000 expenses 17,500 furniture 10,000 accounts receivable 14,000 common stock ? notes payable 6,500 what amount should be shown for common stock on the trial balance? a. $48.000b. $12.500c. $27.000d. $28.000

Answers: 3

Answer

Business, 22.06.2019 12:50

Jallouk corporation has two different bonds currently outstanding. bond m has a face value of $50,000 and matures in 20 years. the bond makes no payments for the first six years, then pays $2,100 every six months over the subsequent eight years, and finally pays $2,400 every six months over the last six years. bond n also has a face value of $50,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. the required return on both these bonds is 10 percent compounded semiannually. what is the current price of bond m and bond n?

Answers: 3

Answer

Business, 22.06.2019 16:50

Arestaurant that creates a new type of sandwich is using (blank) as a method of competition.

Answers: 1

Answer

You know the right answer?

MacDonald Products, Inc., of Clarkson, New York, has the option of proceeding immediately with produ...

Questions