Question
a. Why does one calculate the Value of Perfect Information before calculating the Value of Imperfect Information? b. Suppose a consultant with an excellent track
a. Why does one calculate the Value of Perfect Information before calculating the Value of Imperfect Information?
b. Suppose a consultant with an excellent track record offers to provide you advice on an acquisition that could provide you a profit of $10 M. They will charge you $20,000 for the advice. You determine that the Value of Perfect Information is $19,000.Should you pay the consultant for their advice? Why or why not?
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Accounting For Business
Authors: Peter Scott
3rd Edition
0198807791, 978-0198807797
