Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 13 4 points save answer a landowner is th

Question 13 4 points Save Answer A landowner is thinking to start a new car...

50.1K

Verified Solution

Question

Accounting

image
Question 13 4 points Save Answer A landowner is thinking to start a new car washing business in his own site. he does so, the infrastructure development will cost him $100k, getting the lense will cost him $50k but expects to make a gross profit of $300k. He has 50% chance of making profit from this business. A local businessman (B1) offers the landlord $300k for using his site with the infrastructure. If B1 makes profit in his first year, he will also pay another $100k. Another local businessman (B2) offers $250k for using the site with infrastructure and $150k, if he can make profit in the first year of business. 81 and B2 both have 75% chance of making profit in their first year of business Show the Payoff table and EMV for each decision. What is your recommendation to the landowner? T T T Arial - 3 (12 T. 19 2

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students