Search
Info
Warning
Danger
/ Homework Answers / Other Subjects / A multifunctional FMCG plans to increase plant capacity and hasthree

Question

A multifunctional FMCG plans to increase plant capacity and hasthree alternatives.

1-do nothing

2-Build a small plant, $60.000 in a favorable market and-$30.000 in an unfavorable market

3- Build a large plant, $155.000 in a favorable market and-$90.000 in an unfavorable market

The chance for a favorable market is 0.4

-What is the expected payoff of a small plant

-What is the expected payoff of a large plant

-Which option should the company choose?

Solution
5 (1 Ratings )

Solved
Other Subjects 2 Months Ago 62 Views
Signup to Get this Answer for FREE!