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question Question 10 [4 marks] In a product liability case, a company has two options: settle out of court or go to trial. The cost
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Question 10 [4 marks] In a product liability case, a company has two options: settle out of court or go to trial. The cost of settling out of court is $400,000. . If they go to trial, they will incur $90,000 in legal fees. If found guilty, they will have to pay $800,000 to the plaintiff. If found not guilty, they will have to pay only the legal fees. Lawyers for the company estimate the probability of a not-guilty verdict to be 75%. Including legal fees, calculate the expected cost to the company for taking the case to court (i.e., by going to trial). Show all work for marksStep by Step Solution
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