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2 Sodaco is considering producing a new product: Chocovan soda. Sodaco estimates that the annual demand for Chocovan, D in thousands of cases), has the following mass function: P(D-30) = .30, P(D-50) .40. P(D 8030. Each case of Chocovan sells for $5 and incurs a variable cost of $3. It costs $800,000 to build a plant to produce Chocovan. Assume that if S is received every year (forever), this is equivalent to receiving S10 at the present time. Considering the reward for each action and state of the world to be in terms of net present value, use each decision criterion of this section to determine whether Sodaco should build the plant.

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Answer #1

ove any doubt, ps comments below- duw2c, bc there to help yu pis ral up--As for give dle Seco shaul build the plant Ous

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