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(3) Fahad Co has received legal advice that the most likely outcome of the court case from the employee is that they will lose the
(3) Fahad Co has received legal advice that the most likely outcome of the court case from the employee is that they will lose the case and have to pay $10m. The legal team think there is an 80% chance of this. They believe there is a 10% chance of having to pay $12m, and a 10% chance of paying nothing. (4) Rehab Co gives a year's warranty with all goods sold during the year. Past experience shows that Rehab Co needs to do no repairs on 85% of the goods. On average, 10% need minor repairs, and 5% need major repairs. Rehab Co's manufacturing manager has calculated that if minor repairs were needed on all goods it would cost $100,000, and major repairs on all goods would cost $1m
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