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PLEASE ANSWER! Thank you. . Given cash flows for an investment proposal: Years 1/ $4,000; 2/ $3,600: 3/ $3,000; 4/ $2,400; and 5/ 52,000. a.

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. Given cash flows for an investment proposal: Years 1/ $4,000; 2/ $3,600: 3/ $3,000; 4/ $2,400; and 5/ 52,000. a. b. 3 years If the investment's cost is $9,000, the payback period (rounded to nearest tenth) is: 4 years . 2.5 years 2.9 years 16. A vendor sells fresh flowers bundled into small units. He waits for his supplier to deliver fresh units of flowers each morning. He can only sell fresh flowers (not yesterday's leftovers) and has developed the following probability distribution of daily demand for this item: SIDE BOTH SIDES Demand Probability 5% AWN 20% 40% 25% 10% Unit cost to acquire = $.60; unit selling price = $1.20; Salvage value (from a charitable organization) = $.20 per unit. Using net profit as a payoff, and the expected value criterion, how many units should the vendor order each day to maximize profit over the long-term? a. b. 2 C . 3 4 17. Refer to the previous question. The most the vendor should be willing to pay for any information concerning demand is: a. $1.29 b. $0.90 C. $1.39 d. $0.39 18. A payoff table, based on net profits, used to make a decision involving variable demand considers which kind of loss? a. Loss of future profits c. Loss from obsolete items b. Loss from understock costs d. Opportunity losses 19. A strategy for reaching a decision when uncertainty can be assigned probabilities is: Maximax criterion C. Criterion of rationality b. Maximin criterion d. Table of regrets 0. A researcher is given three options for leasing time on a supercomputer: 1/ Unlimited computer time for $6,000 per month; 2/ Pay $2,000 per month plus $40/hour of use; 3/ Pay $80/hour. The researcher has developed this probability distribution concerning his monthly use of computer time: 3

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