Your company has developed a new energy drink and you are trying to decide whether to sell the recipe, or make and distribute it yourself. A company will pay you $9 million for the recipe. If your company makes the drink itself, it will cost $12 million to build a factory and distribution network. Your analytics and marketing teams tell you there is a 30% chance the market response will be great, a 60% chance the market response will be decent with gross earnings of $15 million, and a 10% chance the market response will be poor with gross earnings of $5 million. If the market response is great, there is a 30% chance the drink will be the new fad and you will make gross earnings of $50 million, a 60% chance the gross earnings will be $40 million, and a 10% chance the gross earnings will be $20 million. What is the expected value from the Perfect Information Tree (just the perfect information tree, not EVPI). Please write your answer in units of $millions, and to 2 decimal places.

Big trail running company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. they feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. based on research the following information was gathered for the upcoming year: machining department finishing department estimated manufacturing overhead by department $ 600 comma 000 $ 400 comma 000 trail running shoes 440 comma 000 machine hours 11 comma 000 direct labor hours running apparel 60 comma 000 machine hours 39 comma 000 direct labor hours manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. at the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel: machining department finishing department trail running shoes 442 comma 000 hours 10 comma 500 hours running apparel 57 comma 000 hours 40 comma 000 hours how much manufacturing overhead will be allocated to the trail running shoes

If a product goes up in price, and the demand for it drops, that product's demand is a. elastic b. inelastic c. stable d. fixed select the best answer from the choices provided

Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistics for the project are three and a half and four and a half years, respectively. use the irr decision to evaluate this project; should it be accepted or rejected