Determination of best decision

Assignment Help Finance Basics
Reference no: EM1353102

1. The college of Business at tech is planning to begin an online MBA program. The initial start-up cost for computing equipment, facilities, course development is $350,000. The college plans to charge tuition f $18,000 per student per year. However, the university administration will charge the college $12,000 per student for the first 100 students enrolled each year for administrative costs and its share of the tuition payments.

a. How many students does the college need to enroll in the first year to break even?
b. If the college can enroll 75 students the fist year, how much profit will it make?
c. The college believes it can increase tuition to $24,000, but doing so would reduce enrollment to 35. Should the college consider doing this?

2. Microcomp is a U.S. based manufacturer of personal computers. It is planning to build a new manufacturing and distribution facility in either South Korea, China, Taiwan, the Philippines, or Mexico. It will take approximately 5 years to build the necessary infrastructure (roads, etc.), construct the new facility, and put it into operation. The eventual cost of the facility will differ between countries and will even vary within countries depending on the financial, labor, and political climate, including monetary exchange rates. The company has estimated the facility cost (in 1,000,000s) in each country under three different future economic and political climates, as follows:

ECONOMIC/POLITICAL CLIMATE
Country Decline Same Improve
South Korea 21.7 19.1 15.2
China 19.0 18.5 17.6
Taiwan 19.2 17.1 14.9
Philippines 22.5 16.8 13.8
Mexico 25.0 21.2 12.5

Determine the best decision, using the following decision criteria.
a. Minimin
b. Minimax
c. Hurwicz (a = .4)
d. Equal likelihood

 

Reference no: EM1353102

Questions Cloud

Change in supply and a change in demand : Analyze the basis for the trends in consumption patterns as discussed in the article. In your analysis, consider the utility derived from the products mentioned in the article
Freuds theory and modern perspectives : Define the Id, Ego, and Superego. How are these three things important to Freud's theory and modern perspectives on personality?
Demonstrate that hash value collides with original value : Show a message that Alice may have spoofed, and demonstrate that its hash value collides with Bob's original hash.
Assume that the only force acting on him during collision : A student (m= 75kg) falls freely from rest and strikes the ground. During the collision with ground, he comes to rest in a time of 0.040s.
Determination of best decision : The college of Business at tech is considering to begin an online MBA program. The initial start-up cost for calculating equipment, facilities, course development is $350,000.
Development of a childs identity : Give a description of how the development of a child's identity might be different depending on the culture in which they are raised. Provide specific examples from the two cultures you considered and references.
Explain what are the responsibilities of the council members : The City of Townscape has had an increasingly difficult time attracting and retaining qualified department heads and other high level city employees.
Prepare schedules showing current receivables : Clarey sold a parcel of land to Hermes Corporation for $400,000 under an installment note contract. Hermes made a $100,000 down payment on April 1, 2007 and signed a 5 year 12 percent note for the $300,000 balance.
Computing the value of shared secret key : You begin the session by sending Bob your calculated value of TA. Bob responds by sending you the value TB = 291. What is the value of your shared secret key?

Reviews

Write a Review

Finance Basics Questions & Answers

  Firm gives a stock option to employees

Which of the following is an acceptable method of accounting for employee stock options and  Which is the date when a firm gives a stock option to employees?

  Eligibility requirements for a qualified pension plan

Which of the following could be permitted as eligibility requirements for a qualified pension plan?

  Financial management and time value of money

How are compounding and discounting related? Explain time value of money.

  Question-financial distress

What payoff do bondholders expect to receive in the event of a recession? What is the promised return on the company's debt and What is the expected return on the company's debt?

  Computation of payback period and npv

Computation of payback period and NPV If your esquire a payback period of two years, will you make the movie

  Important information of present value of growing perpetuity

What is present value of a growing perpetuity which makes payment of $100 in the first year, which thereafter grows at 3% per year? Has a discount rate of 7%

  Evaluate the degree operating leverage

Evaluate the Degree Operating Leverage and the Degree Financial Leverage for the last two years. Did your company increased or decreased the overall risk?

  Calculation of irr, npv of a project with equal cash flows

Calculation of IRR, NPV of a project with equal cash flows through life and what is the project's IRR

  Description of present value and future value

The shorter the length of time between present value and its corresponding future value, the lower present value, relative to future value, true of false?

  Computation of operating cash flows

Computation of Operating Cash flows and described in the module and verify that the answer is the same in each case

  Find the prime rate of interest fluctuates with short-term

find the prime rate of interest fluctuates with short-term loans, rate of interest

  Wyatt oil-calculating earnings per share

Wyatt Oil, an all-equity financed firm, has just reported EPS of $4.00 per share. Despite an economic downturn, Wyatt is confident regarding its current investment opportunities, What is Wyatt's expected EPS in two years?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd