1. A overseer must determine how manifold channels of a actual form to buy. The channels achieve be used to fabrication a new characteristic for which there is increased require. The overseer has narrowed the conclusion of two alternatives: buy one channel or buy two. If barely one channel is acquisitiond and require is further than it can manage, a prevent channel can be acquisitiond at a following term. However, the require per channel would be inferior if the two channels were acquisitiond at the corresponding term.
The estimated chance of low require is 0.30 and the estimated chance of elevated require is 0.70.
The net exhibit esteem associated delay the acquisition of two channels initially is $75000 if require is low and $130000 if require is elevated.
The net exhibit esteem for one channel and low require is $90000. If require is elevated, there are three discretions. One discretion is to do molehill, which would bear a net exhibit esteem of $90000. A prevent discretion is to subcontract; that would bear a net exhibit esteem of $110000. The third discretion is to acquisition a prevent channel. This discretion would bear a net exhibit esteem of $100000
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