Assume That You Have a Riding Lawn Mower That Is

question 94

True/False

Assume that you have a riding lawn mower that is in need of repairs.You can choose to repair or replace it.You are interested in your net cost over the next two years.If you choose to repair,it will cost $300 and there is a 50/50 chance of whether or not it will need additional repairs within the next two years.If it does need additional repairs,there is a 40 percent chance of needing another $400 of repairs,and a 60 percent chance of needing another $200 of repairs.At the end of the two years you estimate that the repaired mower would be worthless.
If you choose to replace the mower by trading in the old mower,the cost after deducting the trade in value is $1500.At the end of the two years you estimate there is a 75 percent chance you could resell it for $1000,and a 25 percent chance that you can resell it for $1300.
After drawing the tree and folding back,the expected value of replacing the mower (by trading in)is a cost of $425.

Understand how to effectively compare and contrast situations or products using analogies and metaphors.

Understand and explain the formula, canned, and problem-solution sales presentation methods and their effectiveness.

Identify the key factors a salesperson should consider when choosing a presentation method and approach technique.

Recognize the importance of preparation in strong negotiation.

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Definitions:

Output

The amount of products or services generated by a company, sector, or economic system within a specific time frame.

Housing Development

Planned construction projects that consist of multiple houses or apartments, designed to cater to specific or general housing needs.

Profit-Maximizing

A financial strategy or decision-making process aimed at achieving the highest possible profit from business operations.

Damages

Monetary compensation required to be paid by an individual or organization to another for loss or injury.