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Unidyde is considering expansion of its Fort Myers plant to produce a new chemical compound. The company is evaluating three different expansion plans: minor, moderate,
Unidyde is considering expansion of its Fort Myers plant to produce a new chemical compound. The company is evaluating three different expansion plans: minor, moderate, or major. They can, of course, also do nothing. Longterm profitability will be a function of future demand growth for the chemical compound. The following payoff table gives the present worth future profitability in $s estimated by Unidyde management:
High Medium Low EOL
Do nothing
Minor
Moderate
Major
Suppose Unidyde estimates the following probabilities for demand growth of the chemical compound:
PHigh Growth
PMedium Growth
PLow Growth
Fill in the table with the EOL for each decision alternative.
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