Answer to Question #72698 in Civil and Environmental Engineering for Bounsy

Question #72698
An inventor has developed an electronic instrument to monitor the impurities in the metal produced by a smelting process. A company that markets this type of equipment is considering the purchase of the patent rights to this instrument for $40,000. The company feels that there is one chance in 5 of the device becoming a successful seller. It is estimated that if the device is successful, it will produce net revenues of $150,000 a year for the next 5 years. If the product is not a success, no revenue will be received. The company’s interest rate is 15%.

(a) Draw a decision tree describing the decision options and determine the best decision policy
Expert's answer

Not answered

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

New on Blog