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BK Books is an online book retailer that also has 1 0 , 0 0 0 bricks and mortar outlets worldwide. You are a risk
BK Books is an online book retailer that also has bricks and mortar
outlets worldwide. You are a riskneutral manager within the Corporate
Finance Division and are in dire need of a new financial analyst. You only
interview students from the top MBA programs in your area. Thanks to your
screening mechanisms and contacts, the students you interview ultimately differ only with respect to the wage that they are willing to accept. About percent of acceptable candidates are willing to accept a salary of $ while
percent demand a salary of $ There are two phases to the interview process that every interviewee must go through. Phase is the initial
onehour oncampus interview. All candidates interviewed in Phase are also
invited to Phase of the interview, which consists of a fivehour office visit.
In all, you spend six hours interviewing each candidate and value this time at
$ In addition, it costs a total of $ in travel expenses to interview
each candidate. You are very impressed with the first interviewee completing
both phases of BK Bookss interviewing process, and she has indicated that
her reservation salary is $ Should you make her an offer at that salary
or continue the interviewing process? Explain
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