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A company wishes to go ahead with one of three mutually exclusive projects, but the profit outcome from each project will depend on the

 

A company wishes to go ahead with one of three mutually exclusive projects, but the profit outcome from each project will depend on the strength of sales demand, as follows. Project 1 Project 2 Project 3 Probability of demand Strong demand profit S 70,000 25,000 50,000 0.1 Moderate demand profit $ 10,000 12,000 20,000 0.4 Weak demand profit (loss) $ (7,000) 5,000 (6,000) 0.5 Instructions: What is the value to the company of obtaining this perfect market research information, ignoring the cost of obtaining the information?

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