Scribd Logo
Upload

Welcome to Scribd!

  • TreePlan Example 179 Win 2010

    Uploaded by

    mujtaba_ali88
    10 views11 pages
    The document evaluates different methods (mechanical, electronic, magnetic) for a contract with potential outcomes of costs, revenues, and probabilities of success or failure. The mechanical method would cost $120,000 with a 50% chance of winning the contract. The electronic method could yield $250,000 revenue with costs and probabilities listed for various outcomes. The magnetic method also specifies potential revenues, costs and probabilities.

    Original Description:

    Original Title

    Copy of TreePlan Example 179 Win 2010

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    XLS, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document evaluates different methods (mechanical, electronic, magnetic) for a contract with potential outcomes of costs, revenues, and probabilities of success or failure. The mechanical method would cost $120,000 with a 50% chance of winning the contract. The electronic method could yield $250,000 revenue with costs and probabilities listed for various outcomes. The magnetic method also specifies potential revenues, costs and probabilities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    10 views11 pages

    TreePlan Example 179 Win 2010

    Uploaded by

    mujtaba_ali88
    The document evaluates different methods (mechanical, electronic, magnetic) for a contract with potential outcomes of costs, revenues, and probabilities of success or failure. The mechanical method would cost $120,000 with a 50% chance of winning the contract. The electronic method could yield $250,000 revenue with costs and probabilities listed for various outcomes. The magnetic method also specifies potential revenues, costs and probabilities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    of 11

    Use mechanical method

    -120000

    0.5
    Awarded contract

    Try electronic method


    2

    250000

    80000

    -50000

    90000

    90000

    Prepare proposal
    Try magnetic method
    -50000

    20000
    -80000

    0.5
    Not awarded contract

    20000

    Do not prepare proposal


    0

    -50000

    84000

    80000

    0.5
    Electronic success
    150000
    0

    150000

    0.5
    Electronic failure
    30000
    -120000

    30000

    0.7
    Magnetic success
    120000
    0

    120000

    0.3
    Magnetic failure
    0
    -120000

    -50000

    Use mechanical method


    -$120,000

    0.5
    Awarded contract

    Try electronic method


    2

    $250,000

    $80,000

    -$50,000

    $90,000

    $90,000

    Prepare proposal
    Try magnetic method
    -$50,000

    $20,000
    -$80,000

    0.5
    Not awarded contract

    $20,000

    $0

    Do not prepare proposal


    $0

    $0

    -$50,000

    $84,000

    $80,000

    0.5
    Electronic success
    $150,000
    $0

    $150,000

    0.5
    Electronic failure
    $30,000
    -$120,000

    $30,000

    0.7
    Magnetic success
    $120,000
    $0

    $120,000

    0.3
    Magnetic failure
    $0
    -$120,000

    $0

    -$50,000

    $0

    Contract with Cunard


    -$50,000

    0.5
    If they lease their ship
    740K
    0.6
    Rejection of Deal
    750K

    Three Probablities
    350K
    700K
    0.5

    240K
    800k
    0.3

    135K
    900K
    0.15

    680K
    Profit as there are some expenses of promotion

    780K
    0.1

    Use mechanical method


    -$120,000

    0.5
    Awarded contract

    Try electronic method


    1

    $250,000

    $80,000
    0.41335

    -$50,000

    $80,000
    0.41335

    $78,307
    0.40669

    Prepare proposal
    Try magnetic method
    -$50,000

    $1,337
    0.00887

    -$80,000

    0.5
    Not awarded contract

    $1,337
    0.00887

    $0

    Do not prepare proposal


    $0

    $0
    0.00000

    -$50,000
    -0.39561

    $73,035
    0.38547

    $80,000

    0.5
    Electronic success
    $150,000
    $0

    $150,000
    0.63212

    0.5
    Electronic failure
    $30,000
    -$120,000

    $30,000
    0.18127

    0.7
    Magnetic success
    $120,000
    $0

    $120,000
    0.55067

    0.3
    Magnetic failure
    $0
    -$120,000

    $0
    0.00000

    -$50,000

    $0

    Use mechanical method


    -$120,000

    0.5
    Awarded contract

    Try electronic method


    1

    $250,000

    $80,000
    0.78714

    -$50,000

    $80,000
    0.78714

    $78,307
    0.78066

    Prepare proposal
    Try magnetic method
    -$50,000

    $1,337
    0.39357

    -$80,000

    0.5
    Not awarded contract

    $1,337
    0.39357

    $0

    Do not prepare proposal


    $0

    $0
    0.38494

    -$50,000
    0.00000

    $73,035
    0.76000

    $80,000

    0.5
    Electronic success
    $150,000
    $0

    $150,000
    1.00000

    0.5
    Electronic failure
    $30,000
    -$120,000

    $30,000
    0.56131

    0.7
    Magnetic success
    $120,000
    $0

    $120,000
    0.92075

    0.3
    Magnetic failure
    $0
    -$120,000

    $0
    0.38494

    -$50,000

    $0

    You might also like