Business, 11.11.2019 17:31, msitez2442

Chris, a small business owner, has identified a store site in a shopping mall in atlanta. the mall owner offered him to alternatives: one location with 10,000 square feet and the other with 15,000 square feet. if he chooses the larger space, he estimates that the store will make a $200,000 annual profit when the economy is strong. however, if the economy is normal or poor, the profit will be only $100,000 or $40,000 respectively. with the smaller store, he estimates the annual profit at $150,000 with a good economy, $100,000 with a normal one and $50,000 with a poor one. economists predict that there is an 80% chance of a normal economy, and a 20% chance of a poor one in the coming year. which alternative is better for chris to maximize his store profit?

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Chris, a small business owner, has identified a store site in a shopping mall in atlanta. the mall o...