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D plc is considering whether to make product X or product Y . The production of the products is mutually exclusive as they use the
D plc is considering whether to make product X or product Y The production of the products is mutually exclusive as they use the same machinery. The estimated sales demand for each product is uncertain and the following probability distribution of the Net Present Values for each product has been identified.
Product X NPV $ Probability
Product Y NPV $ Probability
Using expected values, which one of the following would you recommend for D plc
Accept Product X
Accept Product Y
Accept both Product X and Y
Accept neither product X nor Y
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