Use the Following Data to Answer Questions 88-100 -Refer to the Data on Expected Demand for Weston Gadgets,Inc

question 10

Multiple Choice

Use the following data to answer questions 88-100. $$\begin{array}{l} \quad \quad \quad \quad \quad \quad \quad \quad \text { Expected Demand for Weston Gadgets, Inc. }\\\begin{array} { | l | l | l | l | } \hline \text { Decision Alternative } & \text { Low 35\% } & \text { Medium 30\% } & \text { High 35\% } \\\hline \text { Outsource } & \$ 16.00 \text { million } & \$ 28.00 \text { million } & \$ 66.00 \text { million } \\\hline \text { Build capacity } & \$ 4.00 \text { million } & \$ 32.00 \text { million } & \$ 26.00 \text { million } \\\hline \text { Do nothing } & \$ 9.00 \text { million } & \$ 18.00 \text { million } & \$ 66.00 \text { million } \\\hline\end{array}\end{array}$$
-Refer to the data on Expected Demand for Weston Gadgets,Inc.For the various demand scenarios and their associated probabilities,what is the maximum expected value?

• A)$37.10 million
• B)$26.71 million
• C)$32.55 million
• D)$17.85 million

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Definitions:

Efficient

Characterized by achieving maximum productivity with minimum wasted effort or expense; operating in an effective way.

Statement Of Change

A financial document showing how a particular financial position has changed over a specific period.

Net Debt

The amount obtained by subtracting a company's total liabilities from its liquid assets.

Amortization Expense

The periodic expense recognized in the financial statements as the cost of an intangible asset is systematically allocated over its useful life.