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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
Posted: Sun Jul 10, 2022 10:21 am
by answerhappygod
- 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 101 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)?