The CEO of Stuffitt, the AirBnB for storage units, is pleased with projections that the...
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The CEO of Stuffitt, the AirBnB for storage units, is pleased with projections that the company can earn $ million in profit per year, once it is up and running, two years from now. However, she is concerned about a risk analysis that found Stuffitt only has a chance of getting through each of the next years. Part of the risk is legal, and Stuffitt could invest in a topnotch company lawyer to reduce that risk, which would increase the annual chance of survival to Alternatively, the money could be spent on an aggressive marketing campaign that is expected to raise annual profits to $ million. Which is the better investment in terms of maximizing the value of the firm?
The CEO of Stuffitt, the AirBnB for storage units, is pleased with projections that the company can earn $ million in profit per year, once it is up and running, two years from now. However, she is concerned about a risk analysis that found Stuffitt only has a chance of getting through each of the next years. Part of the risk is legal, and Stuffitt could invest in a topnotch company lawyer to reduce that risk, which would increase the annual chance of survival to Alternatively, the money could be spent on an aggressive marketing campaign that is expected to raise annual profits to $ million. Which is the better investment in terms of maximizing the value of the firm?
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