5IB004 Managerial Economics Portfolio Task Two Semester One 2016/17 Read the following fictional scenarioand write a report that addresses the questions shown below: The managing director of a Belgian outdoor catering company has to decide whether or not to lease new capital equipment. She knows that the demand for their services will depend on the situation in the macroeconomy in Belgium. The possible outcomes are summarised in this contingency table Probability Leasing No leasing Profit Utility Profit Utility Above normal 0.25 80 92 60 76 Normal 0.50 50 40 34 60 Below normal 0.25 0 20 20 Profits are measured in 000s of and Utility is measured in 000s of Utils