The decision tree costs and benefits of present value, Basic Statistics

Assignment Help:

Question:

Imagine that your client, Hillside County Forest Preserve (HCFP), is considering how best to protect their natural lagoons. They have asked for your help, and you have found the following/

If they do nothing, the lagoons are sure to deteriorate and have a societal cost of $100,000
If they enact an experimental new program, called Lagoon Preservation Project ("LPP"), then there is a 50% chance that it will be successful, yielding a societal benefit of $70,000. There is a 50% chance it will not be successful, causing further harm to the lagoons, yielding a societal cost of $150,000
Enacting LPP will cost $10,000

Assume all costs and benefits above are expressed in present values.

a. Which option has the higher expected benefit to society? Show the decision tree that supports your answer.

b. What would the likelihood of success of LPP need to be for enacting it to have the same Expected Value as not enacting it?

Related Discussions:- The decision tree costs and benefits of present value

Accounting for inflation, Accounting for inflation Inflation sales is a ter...

Accounting for inflation Inflation sales is a term reporting a range of sales systems designed to correct problems that comes from traditional cost sales in the use of inflation. I

Payroll, is about deductions

is about deductions

Time series, mathametical examples of components

mathametical examples of components

Financial decision making managers, Income statement: Sosa Corporation rece...

Income statement: Sosa Corporation recently reported an EBITDA of $31.3 million and $9.7 million of net income. The company has $6.8 million interest expense, and the corporate tax

Experimental design, What is the difference between multiple independent va...

What is the difference between multiple independent variables and multiple levels of independent variables are that multiple independent variables sk question #Minimum 100 words ac

Adjusted present value, what is base case NPV?

what is base case NPV?

Calculate the probability of monthly return income, 1. It is often a good i...

1. It is often a good idea to start by visualizing the data. Time series data should have "time" on the horizontal axis. What are you going to have on the vertical axis? If you use

Current Liabilities and Payroll , Prior to the last payroll period of the c...

Prior to the last payroll period of the calendar year, the cumulative earnings of Employer A were $105000. The earnings for the last payroll period of the year which will be paid o

Type of correlation, Which type of correlation would be appropriate to calc...

Which type of correlation would be appropriate to calculate for the each of the following sets of data? A. Correlating gender and year in college (freshman, sophomore, junior,

CHI-SQUARE, proof that the square of a normal distribution will give a chi-...

proof that the square of a normal distribution will give a chi-square

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages