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

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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