In the weakest scenario, both will earn 80 million dollars

Reference no: EM133707581

Question: Bluezuma, a scooter company, plans to develop two products: an electrical bike and an electric scooter. The electric bike will invest 90 million dollars, and the electric scooter will take an investment of 120 million dollars. The chance of a blockbuster, moderate or weak success of any of these products is 20%, 60%, and 20%, respectively. If the electrical bike is a blockbuster success, it will earn a profit of 120 million dollars, and the scooter will earn 150 million dollars. If they are a moderate success, they will earn $100 million (bike) and $120 million (scooter), respectively. In the weakest scenario, both will earn 80 million dollars each.

Reference no: EM133707581

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