Essay
(A) Construct a decision tree to help the company make its decision. Make sure to label all decision and chance nodes and include appropriate costs, payoffs and probabilities.
(B) What is the best lease option? Why?
(C) Suppose the company could hire an experienced mechanic to inspect the old grader to determine the repair cost before the company makes its final decision. If the mechanic is always correct in his assessments, what is the most the company would pay for the inspection?
Correct Answer:
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(B) The decision tree shows the new...View Answer
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Correct Answer:
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(B) The decision tree shows the new...View Answer
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