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11. Exercise in class: in order to produce a new product, there are two schemes. One is the construction of large workshop, one is the
11. Exercise in class: in order to produce a new product, there are two schemes. One is the construction of large workshop, one is the construction of small workshop, the using period are both 10 years. The investment of large workshop is 300 thousand yuan, the investment of small workshop is 120 thousand yuan. The annual profit of the two schemes and the probability of natural states are shown in the table below. Try to make decisions based on NPV index by using maximum probability method and expected value method respectively. (given i=8%wni(Pulau Bifrels Schemes/ Nature states Annual profit Good sales (0.7) Bad sales (0.3) A Building large workshop 100 -20 B Building small workshop 30 20
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