3325p11hs a decision making tools

# Given negative survey results emv4 27190000 73 190000

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 2. Given negative survey results EMV(4) = (.27)(\$190,000) + (.73)(-\$190,000) = -\$87,400 EMV(5) = (.27)(\$90,000) + (.73)(-\$30,000) = \$2,400 The EMV for no plant = -\$10,000 so, The if the survey results are negative, build the small plant build A – 29 Complex Example 3. Compute the expected value of the Compute market survey market EMV(1) = (.45)(\$106,400) + (.55)(\$2,400) = \$49,200 4. If the market survey is not conducted EMV(6) = (.5)(\$200,000) + (.5)(-\$180,000) = \$10,000 EMV(7) = (.5)(\$100,000) + (.5)(-\$20,000) = \$40,000 The EMV for no plant = \$0 so, given no The survey, build the small plant survey, A – 30 Decision Trees in Ethical Decision Making Maximize shareholder value and Maximize behave ethically behave Technique can be applied to any Technique action a company contemplates action A – 31 Decision Trees in Ethical Decision Making Yes Yes Is Is action legal? legal? Is it ethical? (Weigh the Is affect on employees, customers, suppliers, community verses shareholder benefit) shareholder Does action Does maximize company returns?...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern