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ABC Enterprise Solutions

Week

Customers

Percent of Growth

  • 0 400

0.48%

Revenue

  • 1 401.9300503

2160124.033

  • 2 403.8694133

  • 3 405.818134

The Percent growth of demand is 0.482512

  • 4 407.7762575

  • 5 409.7438292

  • 6 411.7208947

  • 7 413.7074998

  • 8 415.7036905

  • 9 417.7095131

  • 10 419.725014

  • 11 421.7502399

  • 12 423.7852379

  • 13 425.8300549

  • 14 427.8847385

  • 15 429.9493361

  • 16 432.0238957

  • 17 434.1084653

  • 18 436.2030932

  • 19 438.307828

  • 20 440.4227184

  • 21 442.5478134

  • 22 444.6831622

  • 23 446.8288144

  • 24 448.9848196

  • 25 451.1512278

  • 26 453.3280892

  • 27 455.5154542

  • 28 457.7133735

  • 29 459.9218981

  • 30 462.1410791

  • 31 464.3709679

  • 32 466.6116162

  • 33 468.8630759

  • 34 471.1253992

  • 35 473.3986384

  • 36 475.6828464

  • 37 477.9780759

  • 38 480.2843802

39

482.6018127

  • 40 484.9304272

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  • 71 562.9690295

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  • 77 579.4652813

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80

587.893798

  • 81 590.7304595

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  • 83 596.4449102

  • 84 599.3228319

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  • 117 702.500866

  • 118 705.890521

  • 119 709.2965315

121

716.1579351

  • 122 719.6134872

  • 123 723.0857127

  • 124 726.5746922

  • 125 730.0805064

  • 126 733.6032367

  • 127 737.1429645

  • 128 740.699772

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  • 130 747.8649559

  • 131 751.4734983

  • 132 755.0994524

  • 133 758.7429022

  • 134 762.4039321

  • 135 766.0826269

  • 136 769.7790719

  • 137 773.4933527

  • 138 777.2255554

  • 139 780.9757664

  • 140 784.7440726

  • 141 788.5305614

  • 142 792.3353205

  • 143 796.1584381

  • 144 800.0000026

Upgrade

Fixed Costs Variable Costs Total Cost Profit
Fixed Costs
Variable Costs
Total Cost
Profit

160,000

5718045%.

468000

854000

1306124.033

Revenue
Revenue

1920000

Without Upgrade

Fixed Costs

Variable CostTotal Cost

Profit

0

360000

336000

1584000

ID

Name

Value

Prob

Pred

  • 0 TreePlan

0

0

0

  • 1 Decision 1

0

0

0

  • 2 Decision 2

0

0

0

Kind

NS

S1

S2

S3

S4

S5

D

2

1

2

0

0

0

T

0

0

0

0

0

0

T

0

0

0

0

0

0

Row

Col

Mark

  • 4 1

TRUE

  • 2 5

TRUE

  • 7 5

TRUE

Number of Clients

Year

Unfavorable

Nuetral

Favorable

 
 
  • 0 400

400

400

No Action

  • 1 300

400

440

  • 2 300

400

480

Sell

  • 3 300

400

480

ABC Soultuions should

Unfavorable

Nuetral

Favorable

Sell ABC Enterprise Solutions

$

2,820,000.00

$

3,960,000.00

$

4,320,000.00

Monthly Fee

$

3,900,000.00

$

3,900,000.00

$

3,900,000.00

UF OE 3 years N OE 3 years F OE 3 years

se the MiniMax approach and sell for the 3.9 Million. The MiniMax

$

1,300,000.00

$

400.00

$

1,500,000.00

$

1,800,000.00

$

2,400,000.00

Number of Clients

Year

Unfavorable

Nuetral

Favorable

 

Unfavorable

 
  • 0 400

400

400

No Action

$

2,820,000.00

  • 1 300

400

440

 
  • 2 300

400

480

Sell

$

3,900,000.00

  • 3 300

400

480

 

Criterion of R

Nuetral

Favorable

Sell ABC Enterprise Solutions

$

1,300,000.00

No Action

$

3,960,000.00

$

4,320,000.00

Monthly Fee

$

400.00

Sell

$

3,900,000.00

$

3,900,000.00

UF OE 3 years

$

1,500,000.00

 

N OE 3 years

$

1,800,000.00

F OE 3 years

$

2,400,000.00

They should sell. Using the criterion of realism is the correct decision making me

ealism

Coefficient =

0.5

$ 3,570,000.00

$ 3,900,000.00

thod for ABC Solutions if they want to be risk neutral. The coefficent of 0.5 is used to show equal con

sistant outcomes.

Number of Clients

Year

Unfavorable

Nuetral

Favorable

 

Unfavorable

 
  • 0 400

400

400

No Action

$

2,820,000.00

  • 1 300

400

440

 
  • 2 300

400

480

Sell

$

3,900,000.00

  • 3 300

400

480

With ABC Solutions t approach and upgrad

Nuetral

Favorable

Sell ABC Enterprise Solutions

$

3,960,000.00

$

4,320,000.00

Monthly Fee

$

3,900,000.00

$

3,900,000.00

UF OE 3 years N OE 3 years F OE 3 years

aking the risk the best outlook would be to use the MiniMax e which will give them the favorable value of $4,320,000.00.

$

1,300,000.00

$

400.00

$

1,500,000.00

$

1,800,000.00

$

2,400,000.00

ID

Name

  • 0 TreePlan

  • 1 Decision 1

  • 2 Decision 2

Value

Prob

Pred

Kind

NS

S1

S2

  • 0 0

0 D

2

1

2

  • 0 0

0 T

0

0

0

  • 0 0

0 T

0

0

0

S3

S4

S5

Row

Col

Mark

  • 0 0

0

 

4

1

TRUE

  • 0 0

0

2

5

TRUE

  • 0 0

0

7

5

TRUE