1.AaronLN Associates is a holding company that specializes in buying out small to medium-sized companies. The company is currently considering the purchase of three companies: Ashley Textiles (hereafter A), Bouchard Mills (hereafter B), and Copps textiles (hereafter C). The main criteria the company uses to determine which companies it will purchase are current profitability and growth potential. In making the purchase decision, the growth potential is moderately to strongly preferred by the company over profitability. Using the preference scale shown in table 1, AaronLN Associates pairwise comparisons for the three target companies are given below for each criterion (growth potential, profitability), respectively.

	Growth Potential					Profitability
Company	A	B	C		Company	A	B	C
A	1	1/2	1/5		A	1	y	7
B	2	1	1/3		B	3	1	9
C	x	3	1		C	1/7	1/9	z

Table 1: Preference scale for pairwise comparisons

Use the problem statement above and provide answers to the following questions:

(a) Complete the missing information in each of the above pairwise comparison matrices, i.e., what should be the values of x, y, and z in the tables above? (4 points)

(note: no fraction, enter each entry with 3 decimals, e,g. 1.000)

X=?, Y=?, Z=?

Note: do your draft work elsewhere and only submit the interim/final results in the reserved cells provided in each of the following tables shown below b) develop an overall ranking of the three companies under consideration using AHP (i.e., compute for each company its overall score and provide its position in the ranking using a decreasing order) - (12 points)

1) determine weight for each company for each criteria (keep three decimals for each entry)

Pairwise comparisons for growth potential criteria (2 points)

	Normalized
Company	A	B	C	weight (row average)
A				Answer
B				Answer
C				Answer

Pairwise comparisons for profitability criteria (2 points)

	Normalized
Company	A	B	C	weight (row average)
A				Answer
B				Answer
C				Answer

2) determine weight for each criteria (no fraction and enter each entry with three decimals, e.g., 2.000), where G=growth potential and P = profitablity, (5 points)

	Standard				Normalized
Criteria	G	P			G	P	weight (row average)
G	Answer	Answer		G			Answer
P	Answer	Answer		p			Answer

3) develop the overall score (enter each entry with decimals) for each company as well as the overall ranking (enter the position with 1 being the first, 2 the second, and 3 the third) - 3 points

Company	Overall score		Overall ranking
A	Answer		Answer
B	Answer		Answer
C	Answer		Answer