Essay
You take a position with a large real estate development company as your first job after graduation.Your first big assignment is to sell an office building - you have been informed the company's cost into the building (and the bottom line price it is willing to accept)is $400,000.You have identified a likely buyer and you assess that his top price is either $500,000 with a probability of .3,$600,000 with a probability of .5,or $1,000,000 with a probability of .2.You have to commit to a posted price - what price will maximize your profitability?
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Price at $600,000; sell 70% of...View Answer
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