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The construction manager for Acme, Inc. must decide whether to build single-family homes, apartments, or condominiums. She estimates annual profits will vary with the economy, as follows
Probabilities
30%
40%
Weak Economy
Normal Economy
Strong Economy
Homes
$191,000.
$86,000.
$65,000.
Apartments
$72,000.
$164,500.
$82,000.
Condominiums
$23,000.
$93,500.
$202,000.
REQUIREMENT:
The business is considering two proposals for their promotions of the professional courses.Proposal one could give a stable return throughout the period. Proposal Two would give hi
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