# James Bernard, head of leasing at New Braunfels Inc., has to decide whether to build a new state-of-the-art processing facility. If the new facility works, the company could realize a profit of \$200,0

James Bernard, head of leasing at New Braunfels Inc., has to decide whether to build a new state-of-the-art processing facility. If the new facility works, the company could realize a profit of \$200,000. If it fails, New Braunfels could lose \$150,000. At this time, he estimates a 60% chance that the new process will fail. The other option is to build a pilot plant and then decide whether to build a company-wide facility. The pilot plant would cost \$10,000 to build. James estimates a 50-50 chance that the pilot plant will work. If the pilot plant works, there is a 90% probability that the complete plant, if it is built, will also work. If the pilot plant does not work, there is only a 20% chance that the complete project (if it is constructed) will work. Should he build the plant or build the pilot project and then make a decision?
Create a decision tree.
What recommendation, based on expected value, would you give James?

Don't use plagiarized sources. Get Your Custom Essay on
James Bernard, head of leasing at New Braunfels Inc., has to decide whether to build a new state-of-the-art processing facility. If the new facility works, the company could realize a profit of \$200,0
Just from \$10/Page

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.