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first outlet in Atlanta, Georgia. Three combinations of site and store design have been proposed for a Bryce Discount outlet in Atlanta. (A fourth alternative,

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first outlet in Atlanta, Georgia. Three combinations of site and store design have been proposed for a Bryce Discount outlet in Atlanta. (A fourth alternative, of course, is not to expand at this time into the southern states.) Plan A is for a multistoried outlet in a prime location 1 mile from downtown Atlanta. If successful, this would generate larger profits than the other two alternatives. However, plan A requires borrowing a large sum from moneylenders in order to purchase the site and build the facility. It exposes Bryce to a large potential loss if the outlet is only marginally successful. Plan B if for a scaled-down version of Plan A. The outlet would be smaller and less expensive to build. Its potential profits are less than for plan A, but the potential loss if the cutlet is only marginally successful is less. Plan Cis to lease a single-storied building on the periphery of Atlanta's downtown area. The costs for leasing and remodelling the outlet would both be less than for plans A and B. It would be moderately profitable at any foreseeable level of demand. However, the potential profit would be less than for plans A and B if local demand is at least moderate. Table 1 lists the NPVs, obtained by financial analysis, of the three plans for different levels of future demand. a. Based on a maximax payoff strategy, which plan should be selected? b. Based on a maximin payoff strategy, which plan should be selected? c. Based on a minimax regret strategy, which plan should be selected? Show calculations to justify your response. Table 1. NPV of Bryce's Alternative plans e MM 0 PlamA | PlanB | PlanC - Medium Deman Low Demand

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