Question
The Parkers Barber is considering opening a new high-end barber shop. The new shop will cost them $150,000 in infrastructure, equipment, rent and salary. Parkers
The Parkers Barber is considering opening a new high-end barber shop. The new shop will cost them $150,000 in infrastructure, equipment, rent and salary. Parkers think that there will be a 25% chance of "prospering local economy" that leads to $350,000 revenue, a 35% chance of "moderate local economy" that leads to $210,000 revenue and a 40% chance of "mediocre local economy" that leads to $80,000 in revenue. Assume if the Parkers Barber does not expand, there is no impact on revenue. Due to the uncertainty, Parkers Barber is planning to conduct a market analysis to identify the local economy. For market research that can predict local economy precisely, what is the maximum price that the Parkers Barber is willing to pay?
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