ABC Enterprise Solutions

Week
Customers
0
400
1
401.9300503
2
403.8694133
3
405.818134
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

Percent of Growth
0.48%

Revenue
2160124.033

The Percent growth of demand is 0.4825125718045%.

39
40
41
42
43
44
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71
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73
74
75
76
77
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79

482.6018127
484.9304272
487.2702774
489.6214178
491.9839027
494.3577869
496.7431253
499.1399734
501.5483865
503.9684205
506.4001315
508.8435758
511.29881
513.7658911
516.2448761
518.7358225
521.2387881
523.7538307
526.2810088
528.8203808
531.3720057
533.9359424
536.5122504
539.1009895
541.7022195
544.3160009
546.942394
549.5814598
552.2332594
554.8978543
557.5753063
560.2656772
562.9690295
565.6854259
568.4149292
571.1576027
573.9135099
576.6827147
579.4652813
582.2612742
585.070758

80
81
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104
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107
108
109
110
111
112
113
114
115
116
117
118
119
120

587.893798
590.7304595
593.5808082
596.4449102
599.3228319
602.2146399
605.1204012
608.0401833
610.9740536
613.9220802
616.8843314
619.8608759
622.8517825
625.8571207
628.87696
631.9113704
634.9604222
638.024186
641.1027329
644.1961342
647.3044616
650.427787
653.5661828
656.7197218
659.888477
663.0725219
666.2719302
669.486776
672.7171338
675.9630786
679.2246854
682.5020299
685.795188
689.104236
692.4292506
695.7703088
699.127488
702.500866
705.890521
709.2965315
712.7189765

121
122
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124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144

716.1579351
719.6134872
723.0857127
726.5746922
730.0805064
733.6032367
737.1429645
740.699772
744.2737415
747.8649559
751.4734983
755.0994524
758.7429022
762.4039321
766.0826269
769.7790719
773.4933527
777.2255554
780.9757664
784.7440726
788.5305614
792.3353205
796.1584381
800.0000026

Upgrade
Fixed Costs
Variable Costs Total Cost Profit
160,000
468000
854000
1306124.033

d is 0.4825125718045%.

Revenue
1920000

Without Upgrade
Fixed Costs Variable CostsTotal Cost Profit
0
360000
336000
1584000

ID

Name
0 TreePlan
1 Decision 1
2 Decision 2

Value

Prob
0
0
0

Pred
0
0
0

0
0
0

Kind
D
T
T

NS

S1
2
0
0

S2
1
0
0

S3
2
0
0

S4
0
0
0

S5
0
0
0

0
0
0

Row

Col
4
2
7

Mark
1
TRUE
5
TRUE
5
TRUE

Number of Clients
Year

Unfavorable

0
1
2
3

Nuetral

400
300
300
300

Favorable

400
400
400
400

400 No Action
440
480 Sell
480

ABC Soultuions should use the Mini

Unfavorable

Nuetral

Sell ABC Enterprise Solutions

4,320,000.00 Monthly Fee

Favorable

2,820,000.00 $

3,960,000.00 $

3,900,000.00 $

3,900,000.00 $

3,900,000.00 UF OE 3 years
N OE 3 years
F OE 3 years

ons should use 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

0
1
2
3

400
300
300
300

Favorable

400
400
400
400

400 No Action
440
480 Sell
480

Unfavorable

2,820,000.00

3,900,000.00

Criterion of Realism
Sell ABC Enterprise Solutions
3,960,000.00 $ 4,320,000.00 Monthly Fee

$ 1,300,000.00 No Action
$
400.00 Sell

3,900,000.00 $ 3,900,000.00 UF OE 3 years

N OE 3 years
F OE 3 years

$ 1,500,000.00
$ 1,800,000.00
$ 2,400,000.00

Nuetral

$
$

Favorable

They should sell. Using the criterion of realism is the correct decision making method for ABC

iterion of Realism
$ 3,570,000.00
$ 3,900,000.00

Coefficient =

0.5

making method for ABC Solutions if they want to be risk neutral. The coefficent of 0.5 is used to show equal consistant outcom

w equal consistant outcomes.

Number of Clients
Year

Unfavorable Nuetral

0
1
2
3

400
300
300
300

Favorable

400
400
400
400

400 No Action
440
480 Sell
480

Unfavorable

2,820,000.00

3,900,000.00

With ABC Solutions taking the risk the best outloo

approach and upgrade which will give them the fa

Nuetral

Favorable

$ 3,960,000.00 $
$ 3,900,000.00 $

Sell ABC Enterprise Solutions

4,320,000.00 Monthly Fee
3,900,000.00 UF OE 3 years
N OE 3 years
F OE 3 years

C Solutions taking the risk the best outlook would be to use the MiniMax
h and upgrade 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
0
0
0

Pred
0
0
0

Kind
0D
0T
0T

NS

S1
2
0
0

S2
1
0
0

2
0
0

S3

S4
0
0
0

S5
0
0
0

Row
0
0
0

Col
4
2
7

Mark
1
TRUE
5
TRUE
5
TRUE