GroupCase3 - competition (hint: competition with LP),...

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BUSI 620 Group Case 3 Group Case 3 1. Chapter 13: Problem 11* *Competition Company’s Expected Present Value Price Strategy of Company’s Profit Yes HP 0.5(12,000) + 0.3(10,000) (80%) + 0.2(8,000) = 10,600 MP _____ LP _____ No HP _____ (20%) MP _____ LP _____ After calculating the expected present value of company’s profit under different price strategies, first, choose the price strategy which produces the highest expected present value of profit with competition and without
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Unformatted text preview: competition (hint: competition with LP), second, calculate the expected present value of companys profit using the probabilities of 80% and 20%, and then compare it with the certain return of $10,000 that the company receives by investing in Treasury bills. 2. Please read Case Study 12-4 The Market for Dumping Rights (p. 505) and write an essay (at least two pages) on Global carbon emissions trading, a good idea? Page 1 of 1...
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This note was uploaded on 01/29/2012 for the course BUSINESS LU124475 taught by Professor Prof.johns during the Spring '09 term at Liberty.

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