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QU Your candy company is shutting down a production line, and it is your responsibility to deal with the Not candy wrapping machine. The company
QU Your candy company is shutting down a production line, and it is your responsibility to deal with the Not candy wrapping machine. The company could keep it in inventory for a possible future product and Poi estimates that the reservation value is $250,000. Your dealings on the secondhand market lead you to PF believe that there is a 0.35 chance a random buyer will pay $300,000, a 0.25 chance the buyer will pay $350,000, a 0.15 chance the buyer will pay $400,000, and a 0.25 chance it will not sell. A) Should you sell the machine or keep it in storage? B) If you must commit to a posted price, what price maximizes profits? 7 A B IE
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