Iron Butterfly, Inc., submits proposals in response to RFPs and faces three possible outcomes:

N1, Iron Butterfly gets a full contract; N2, it gets a partial contract (job is shared with other contractors); N3, it gets no contract. The company is currently assessing three RFPs, coded P1, P2, and P3. For P3, the customer will pay a fixed amount for proposal preparation; for P1 and P2, Iron Butterfly must absorb the proposal-preparation costs, which are expected to be high. Based upon project revenues and proposal-preparation costs, the expected profits

($ thousands) are as shown:

To which RFPs would Iron Butterfly respond using the three decision criteria?

Transcribed Image Text:

N1 N2 N3 P1 500 200 -300 P2 300 100 -100 P3 100 50 25