Explain how much would a corporate spy be worth trans-rail

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Reference no: EM13105461

Q. Trans-rail is bidding on a project that it figures will cost $400,000 to perform. Using a 25% mark up, it will charge $500,000, netting a profit of $100,000. Explain however, it has been learned that another company, Rail Freight, is also considering bidding on the project. If Rail Freight does submit a bid, it figures to be a bid about $470,000. Trans-rail really wants this project and is considering a bid with only a 15% mark up to $460,000 to ensure winning regardless of whether or not Rail Freight submits a bid.

If Rail Freight is known to submit bids on only 25% of the projects it considers, illustrate what decision should Trans-rail make?

Given the information is (c), explain how much would a corporate spy be worth to Trans-rail to find out if Rail Freight will bid?

Reference no: EM13105461

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Explain how much would a corporate spy be worth trans-rail : If Rail Freight is known to submit bids on only 25% of the projects it considers, illustrate what decision should Trans-rail make? Given the information is (c), explain how much would a corporate spy be worth to Trans-rail to find out if Rail Frei..

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