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The answer to the following question is $16,426. Can you explain how to arrive at this answer? I'm starting up a custom t-shirt business, and
The answer to the following question is $16,426. Can you explain how to arrive at this answer? I'm starting up a custom t-shirt business, and I'm trying to figure out how many logo printing machines to buy. Each machine costs $3,130 and has a 75% chance of working. If I don't have a working machine, I'll lose out on $1,000,000 in profit (this figure does not include the machine cost). If I buy the optimal number of machines, what is the sum of the machine cost and the expected failure cost
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