if the company builds a small plant, experienced an initial high demand in the first two years and decides not to expand

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if the company builds a small plant, experienced an initial high demand in the first two years and decides not to expand

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If The Company Builds A Small Plant Experienced An Initial High Demand In The First Two Years And Decides Not To Expand 1
If The Company Builds A Small Plant Experienced An Initial High Demand In The First Two Years And Decides Not To Expand 1 (52.39 KiB) Viewed 99 times
if the company builds a small plant, experienced an initial high demand in the first two years and decides not to expand the plant, the company would generate cash flow $300,000/year with high demand (due to more competition) with 50% probability, and 50% probability of low demand with $400,000/year. What's the total projected net cash flow of the remaining eight years with no change in plant size after experience High demand in the first two years (2.D)?
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