Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 27

A business executive is trying to decide whether to undertake one of two contracts or neither one. He has simplified the situation somewhat and feels that it is sufficient to imagine that the contracts provide alternatives as given in Table.
TABLE 22
(a) Should the executive undertake either one of the contracts If so, which one What would he do if he made decisions with an eye toward maximizing his expected NPW
(b) What would be the probability that contract A would result in a larger profit than that of contract B