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b) The president of Wright Industries is considering whetherto build a large or small manufacturing plant in Brisbane. Her decision is summarized in the following
b) The president of Wright Industries is considering whetherto build a large or small manufacturing plant in Brisbane. Her decision is summarized in the following table: Build Large Plant Build Small Plant Favourable market $400 000 $80 000 Unfavourable Market -$300 000 -$10 000 The probability of a favourable market = 0.5. i) Calculate the EMV for each act and determine the EMV*. ii) Calculate the EPPI. iii) What is the Expected Value of Perfect Information (EVPI)
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