Chemitronix Ltd. is a microchips manufacturing company. It was found that the business is at the maturity stage, demanding some change. After rigorous research, management came up with the following decision variables. Expansion: 45% chance of gaining 1,500,00; 55% chance of losing X New Product: 50% chance of gaining 900,000; 50% chance of losing 539740 What must have been the value of expansion loss if expansion and new product will result to the same expected monetary values?

Chemitronix Ltd. is a microchips manufacturing company. It was found that the business is at the maturity stage, demanding some change. After rigorous research, management came up with the following decision variables. Expansion: 45% chance of gaining 1,500,00; 55% chance of losing X New Product: 50% chance of gaining 900,000; 50% chance of losing 539740 What must have been the value of expansion loss if expansion and new product will result to the same expected monetary values?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 17.1IP

See similar textbooks

Similar questions

Chemitronix Ltd. is a microchips manufacturing company. It was found that the business is at the maturity stage, demanding some change. After rigorous research, management came up with the following decision variables Expansion: 45% chance of gaining 1,500,000; 55% chance of losing X New Product: 50% chance of gaining 900,000; 50% chance of losing 576354 What must have been the value of expansion loss if expansion and new product will result to the same expected monetary values?
If money has a time value, then the future value will always be more than the original amount invested. Select one: O True O False
A vendor cost Ρhр 75.00 to buy the things he needs make home made рulvoron. A рrivate рark allows him to sell his рroduct inside the amusement рark. However, he will be charged Ρhр 1.00 for each рulvoron sold. Calculate the break – even рoint if the рrice he charge for a рulvoron is Ρhр 1.50. Solve the рroblem by formula and by graрh.
Auria will produce a venicle component and knows that each start generates a cost of 5,000 pesos. Its production capacity is 150,000 units and the cost per unit is $ 200, tne annual demand is 100,000 units, and the inventory rate is 15% per month. Consider that the product allows shortages and the cost of goodwill loss is $ 0.3 for each unit of said items, while the penalty cost if they do not deliver is S 30 / unit / year. a) Calculate the total annual cost and the quantity Q required.
In the past four years, the annual returns of one company’s stockare 12%, 18%, and –14%, and 7%.a) What is the geometric average return? b) What is the arithmetic average of the returns? c) According to an economist’ forecast on the Year 2020, the probabilities of repeatingthe performances of the former four years are 30%, 30%, 20%, and 20%, respectively.What is the expected return of the stock in the Year 2020
A European consortium has spent a considerable amount of time andmoney developing a new supersonic aircraft. The aircraft gets high markson all performance measures except noise. In fact, because of the noise,the consortium’s management is concerned that the U.S. government mayimpose restrictions on some of the American airports where the aircraftcan land. Management judges a 50–50 chance that there will be somerestrictions. Without restrictions, management estimates its (presentdiscounted) profit at $125 million; with restrictions, its profit would beonly $25 million. Management must decide now, before knowing thegovernment’s decision, whether to redesign parts of the aircraft to solvethe noise problem. The cost of the redesign program is $25 million. Thereis a .6 chance that the redesign program will solve the noise problem (inwhich case, full landing rights are a certainty) and a .4 chance it will fail. Using a decision tree, determine the consortium’s best course ofaction, assuming…
A bottling plant i lls 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed?
An automobile spare part is sold for $15 per unit. The VC are $3 per unit, 15000 units of the product are sold annually and a profit of $80,000 is made. The change to be made in the design of the product will increase the VC by 20% and the FC by 10%, and the sales amount will increase to 18000 units. a) At what selling price do we break even? b) What is the annual profit when the selling price remains the same ($12/unit)?
a) A thermomix is advertised at RM8000 less 40%, 12% and 2.5%. Find the net price. b) Saira, a furniture shop owner, buys a new set of furniture worth $8,260. She received an invoice dated 26 October 2021 with trade discounts of 7%, 2% an is offered cash discount terms 3/15, 2/30, n/60. i. Calculate the single discount equivalent to the trade discounts given. Calculate the last day to receive the 2% cash discount. Determine the total amount due if Saira pays the invoice on 17 November 2021. iv. If she pays $4,000 on 3 November 2021, how much is the balance due before the credit term ends?
A firm hasi nitial value V and has an investment opportunity costing 400 that will yield it an endpoint value of V +500 but it has to issue new shares to raise the required 400. Initially its owners own 10 shares that are currently selling at a market price of 80 per share. Note that this price may not necessarily reflect the true value per share– only the firm itself knows this. If it is indifferent between issuing and not issuing at the market price of 80, what is the initial true value of the firm V?
Your firm uses a continuous review system and operates52 weeks per year. One of the SKUs has the followingcharacteristics.Demand 1D2 = 20,000 units>yearOrdering cost 1S2 = $40>orderHolding cost 1H2 = $2>unit>yearLead time 1L2 = 2 weeksCycle@service level = 95 percentDemand is normally distributed, with a standard deviation ofweekly demand of 100 units.Current on-hand inventory is 1,040 units, with no scheduledreceipts and no backorders.a. Calculate the item’s EOQ. What is the average time, inweeks, between orders?b. Find the safety stock and reorder point that provide a95 percent cycle-service level c. For these policies, what are the annual costs of (i) holdingthe cycle inventory and (ii) placing orders?d. A withdrawal of 15 units just occurred. Is it time to reor-der? If so, how much should be ordered?
Eng. Economic Q1. Would a dollar tomorrow be worth more to you today when interested is 20% or 10%?