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First, Calculate the mean revenue per location using the Revenue By Locationworksheet ( Second chart ) Construct a decision tree that analyzes the possibility of
First, Calculate the mean revenue per location using the "Revenue By Location"worksheet Second chartConstruct a decision tree that analyzes the possibility of achieving the mean revenue on an ongoing basis along with a correspondingly high and low estimate. Use the following data to construct your decision tree. Next, Construct your decision tree in Excel and calculate the expected value. se the time value of money in your analysis to assess the pros and cons of each region. Also, experiment with discount rates one high, middle, and low to understand the effect of cost of capital and risk.
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