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Wayne and Gary's Dinner (located in Letterkenny) is selling three products this year. The table below provides the NPV of all cash flows for
Wayne and Gary's Dinner (located in Letterkenny) is selling three products this year. The table below provides the NPV of all cash flows for each product depending on market conditions. Good Market Fair Market Poor Market Apple Pie $45,000 $26,000 -$4,000 Banana Cake $60,000 $38,000 -$20,000 Blueberry $32,000 $14,000 $10,000 Pancakes The respective probabilities of a good, fair, and poor market are .3, .45, and .25. Their friend Stewart who knows the market well has offered to tell them the market condition for this upcoming year ahead of time, thus providing them with perfect information. What is the maximum they should be willing to pay Stewart for this information? (Answer to the nearest whole number)
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