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Consider the following information. In order to satisfy a sharp increase in demand because of the end of the pandemic, QAN is evaluating investing in
Consider the following information. In order to satisfy a sharp increase in demand because of the end of the pandemic, QAN is evaluating investing in a major upgrade of its airplanes. QAN has already identified two strategies they may follow in doing their upgrades; these strategies will be called Project A and Project B. In order to mitigate risk, QAN has asked Rachel Consulting Limited to conduct some market research. Rachel Consulting is being paid $2m as a fixed fee for its consulting services. Project A has an initial outlay of $800 million and Project B has an initial outlay of $650 million. Project A will generate additional revenues of $250 million starting at the end
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