subject
Business, 15.10.2019 19:30 roxymiller3942

Expando, inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. the company is currently considering two options. the first is a small facility that it could build at a cost of $7 million. if demand for new products is low, the company expects to receive $9 million in discounted revenues (present value of future revenues) with the small facility. on the other hand, if demand is high, it expects $14 million in discounted revenues using the small facility. the second option is to build a large factory at a cost of $8 million. were demand to be low, the company would expect $9 million in discounted revenues with the large plant. if demand is high, the company estimates that the discounted revenues would be $13 million. in either case, the probability of demand being high is .30, and the probability of it being low is .70. not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. a. calculate the npv for the following: (leave no cells blank - be certain to enter "0" wherever required. enter your answers in millions rounded to 1 decimal place.) plans npv small facility $ million do nothing million large facility millionb. the best decision to expando isto build the large facility. to build the small facility. to do nothing.

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 19:30
Consider the following ethical argument. which of the three statements represents the moral statement about a moral principle? statement 1: a dealership advertised a car at a very low price, but only had a similar higher priced model in stock. statement 2: it is wrong to perform a bait and switch. statement 3: the dealership was wrong to advertise the car on special sale when in actually it was not available.
Answers: 3
question
Business, 22.06.2019 13:10
The textbook defines ethics as “the principles of conduct governing an individual or a group,” and specifically as the standards one uses to decide what their conduct should be. to what extent do you believe that what happened at bp (british petrolium) is as much a breakdown in the company’s ethical systems as it is in its safety systems, and how would you defend your conclusion?
Answers: 2
question
Business, 22.06.2019 14:20
Anew 2-lane road is needed in a part of town that is growing. at some point the road will need 4 lanes to handle the anticipated traffic. if the city's optimistic estimate of growth is used, the expansion will be needed in 4 years and has a probability of happening of 40%. for the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years respectively. the probability of the pessimistic estimate happening is 20%. the expansion will cost $ 4.2 million and the interest rate is 8%. what is the expected pw the expansion will cost?
Answers: 1
question
Business, 22.06.2019 15:20
On january 2, 2018, bering co. disposes of a machine costing $34,100 with accumulated depreciation of $18,369. prepare the entries to record the disposal under each of the following separate assumptions. exercise 8-24a part 2 2. the machine is traded in for a newer machine having a $50,600 cash price. a $16,238 trade-in allowance is received, and the balance is paid in cash. assume the asset exchange has commercial substance.
Answers: 2
You know the right answer?
Expando, inc., is considering the possibility of building an additional factory that would produce a...
Questions
question
English, 27.05.2021 03:50
question
History, 27.05.2021 03:50
question
Arts, 27.05.2021 03:50
question
Chemistry, 27.05.2021 03:50
question
Biology, 27.05.2021 03:50
question
English, 27.05.2021 03:50
Questions on the website: 13722361