Value of Perfect Information (L.O.2): Suppose Buffalo Company is faced with the following situation for a new
Question:
Value of Perfect Information (L.O.2): Suppose Buffalo Company is faced with the following situation for a new product:
Assume Buffalo Company can obtain perfect information from a marketing research firm whether or not the product will be successful.
Required:
a. What action would Buffalo Company take without any information?
b. What action would they take with the perfect information?
c. What is the value of the perfect information?
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