A rm that plans to expand its product line must decide whether to build a small or a large facility to produce the new
products. If it builds a small facility and demand is low, the net present value after deducting for building costs will be
$400,000. If demand is high, the rm can either maintain the small facility or expand it. Expansion would have a net
present value of $450,000, and maintaining the small facility would have a net present value of $50,000.
If a large facility is built and demand is high, the estimated net present value is $800,000. If demand turns out to be low,
the net present value will be -$10,000.
The probability that demand will be high is estimated to be .60, and the probability of low demand is estimated to be .40.

a. Analyze using a tree diagram.
b. Compute the EVPI. How could this information be used?
c. Determine the range over which each alternative would be best in terms of the value of P(demand low).

To be able to better compare stock performance within the same industry, similar companies are grouped into? a)market sectors b) industry blocks c) performance sectors d) average earning blocks

On january 1, 2017, fisher corporation purchased 40 percent (90,000 shares) of the common stock of bowden, inc. for $980,000 in cash and began to use the equity method for the investment. the price paid represented a $48,000 payment in excess of the book value of fisher's share of bowden's underlying net assets. fisher was willing to make this extra payment because of a recently developed patent held by bowden with a 15-year remaining life. all other assets were considered appropriately valued on bowden's books. bowden declares and pays a $90,000 cash dividend to its stockholders each year on september 15. bowden reported net income of $400,000 in 2017 and $348,000 in 2018. each income figure was earned evenly throughout its respective year. on july 1, 2018, fisher sold 10 percent (22,500 shares) of bowden's outstanding shares for $338,000 in cash. although it sold this interest, fisher maintained the ability to significantly influence bowden's decision-making process. prepare the journal entries for fisher for the years of 2017 and 2018. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field. do not round intermediate calculations. round your final answers to the nearest whole dollar.)

There is a small, family-owned store that sells food and household goods in a small town. the owners have good relations with the community, especially with local farmers who supply much of the food. the farmers aren't organized into a cooperative or union, and the store deals with each individually. suppose the store wanted to buy some farms to control the supply of certain vegetables. how would you classify this strategic move? select one: a. horizontal integration b. forward integration c. backward integration d. concentric integration