Displayed in millions
- (£8) should have been used as -£8
- Germany: 0.75 * 24 = 18 0.24 * 4 = 0.96 18.96 Spain: 0.55* 32 = 17.6 0.45 * 4 = 1.8 19.4 USA East: 0.45 * 44 = 19.8 0.55 * 8 = 4.4 24.2 USA West: 0.5 * 37.5 = 18.75 0.5* 6 = 3 21.75
Net gain for all 4: 21.75+24.2+19.4+18.96 = £84.31
- £850,000 capital is available, additional £175,000 legal expense to be paid with external investments. Find most rewarding option. Kitchen: 0.6 * 1340000 = 804000 0.4 * 125000 = 50000
854000 / 850000 = 1.004705882
Sports Club: 0.25 * 1480000 = 370000 0.5 * 1220000 = 610000 0.25 * 155000 = 38750 370000 + 610000 + 38750 1018750 / 850000 = 1.198529412
Extra Capacity: 0.25 * 1280000 = 320000 0.35 * 1240000 = 434000 0.4 * 1190000 = 476000 320000 + 434000 + 476000 = 1230000 850000 - 175000 = 675000 1230000/675000 = 1.822222222
Kitchen expansion is most profitable as it has the highest probability of returning the investment.