Hi-Ho Yo-Yo, Inc. It was a little past 9:00 on a Monday morning when Jeff Baker walked into your office with a box of donuts.
"I've been talking with Anne about a problem we have with shortterm capacity in our pad printing operation. You know, that's where Imprint the logo on the Custom lin...
In the mid-eighties, the Toro company launched a promotion in
which snowblower purchasers could refund a portion of their purchase if the next
winter brought modest snowfalls. The amount of their refund was tied to snowfall
amounts and so, the program was prey to certain risks and uncer...
The comptroller of the Macrosoft
Corporation has $100 million of excess funds to invest. She has been instructed
to invest the entire amount for one year in either stocks or bonds (but not
both) and then to reinvest the entire fund in either stocks or bonds (but not
both) for one year more...
Real Options and the Value of Information
Did you know that roughly 60 percent of new restaurant businesses fail within the first three years of operation (Abrams, 2004)?
Suppose you have a close friend who is employed in a high-paying position in the banking industry wi...
Assignment 2: LASA 2—The Case For, or Against, New Orleans
Sometimes one’s choices may involve catastrophic decisions and
bear great risk and yet there can be no clear answer. For example, if a person
gets a divorce, shutters a plant, sells a losing investment, or closes their
There is a 0.7 probability of experiencing an increase in demand and a 0.3 probability of a decrease. If a company redesigns an existing product, they will gain $400,000 if there is a demand increase and $100,000 if demand falls. If the company designs a new product, they will gain $300,00...