Determine the probability that the following tree reflecting demand for a product, given an expense of acquiring the necessary equipment of $100k, has a rate of return higher than 30% per year. 4. Sales: $27k/yr 4 yr (2) Sales: $26k per year with a $35k overhaul in yr 4 Decide Low demapd p=0.35 $100k acquisition cost High demand p=0.65 Sales $45k/yr 10 x Decide 12 yrs Sales $35k per year with a $35k overhaul in yr 6

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter6: Applications Of The Derivative
Section6.CR: Chapter 6 Review
Problem 6CR: Determine whether each of the following statements is true or false, and explain why. In a related...
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Determine the probability that the following tree reflecting demand for a product, given an expense of
acquiring the necessary equipment of $100k, has a rate of return higher than 30% per year.
4.
Sales: $27k/yr
4 yr
(2)
Sales: $26k per year with a $35k overhaul in yr 4
Decide
Low demapd p=0.35
$100k acquisition cost
High demand p=0.65
Sales $45k/yr
10 x
Decide
12 yrs
Sales $35k per year with a $35k overhaul in yr 6
Transcribed Image Text:Determine the probability that the following tree reflecting demand for a product, given an expense of acquiring the necessary equipment of $100k, has a rate of return higher than 30% per year. 4. Sales: $27k/yr 4 yr (2) Sales: $26k per year with a $35k overhaul in yr 4 Decide Low demapd p=0.35 $100k acquisition cost High demand p=0.65 Sales $45k/yr 10 x Decide 12 yrs Sales $35k per year with a $35k overhaul in yr 6
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