Expected value approach, A consultant developed the

Expected value approach

Reference no: EM13159839

A consultant developed the following projections of net cash flow (in thousands of dollars) for a five year planning horizon. All costs including the consultants fee are included.

a. What decision should Lake Placid make using the expected value approach?

b. Compute the expected value of perfect information. Do you think it would be worth trying to obtain additional information concerning which scenario is likely to occur?

Reference no: EM13159839

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