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Business, 26.10.2021 14:00 antonioamericapcs

A swim club is designing a new pool to replace its old pool. The new pool would need to last for 10 years since the club is planning on relocating after 10 years. A concrete shell would cost $100,000 and last for all 10 years. Another option is to install a vinyl liner that would cost only $75,000 to install. However, the vinyl is not guaranteed to last for all 10 years and has a 90% chance of breaking down. Repair of the vinyl would cost $40,000 and would extend the life of the vinyl liner to the 10-year mark. If both options are acceptable to the swim club, which one minimizes their cost? a) Draw a decision tree.
b) Calculate the EMV(s); which one should they choose?

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A swim club is designing a new pool to replace its old pool. The new pool would need to last for 10...
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