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A manufacturing company is considering whether to establish a new distribution center ( DC ) in a particular region. The initial investment for setting up
A manufacturing company is considering whether to establish a new distribution center DC in a particular region. The initial investment for setting up the new DC is Rs If the new DC is successful, it is expected to generate annual savings of Rs due to reduced transportation costs and improved efficiency. However, there's uncertainty about market demand in that region, with a chance of high demand and a chance of low demand. What would be the expected annual savings in case of successful setting up of new DC with discount rate?
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