Unformatted text preview: conditions (i.e., sell within a month or no commission on the second property and no chance to sell the third property). If you succeed in selling the first two properties, you will also have the option of selling the third. After the client has left, Eric proceeds to analyze the proposal to determine whether or not to accept it. He figures his selling costs and his chances of selling each property at the set prices to be: Property Cost ($000s) Probability of Sale A $80 .7 B 20 .6 C 40 .5 He believes that sale of a particular property would not make it any more or less likely that the two remaining properties could be sold. Selling costs would have to be incurred whether or not a particular property is sold but could be avoided by deciding not to attempt to sell the property....
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This note was uploaded on 05/21/2011 for the course ISOM 111 taught by Professor Hu,inchi during the Spring '10 term at HKUST.
- Spring '10