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HROM530 Refer once again to the International Expansion spreadsheet (xIxs) 1 provided in the previous module

MS Excel

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HROM530 Refer once again to the International Expansion spreadsheet (xIxs) 1 provided in the previous module. Take note of the financial information provided in

the “Revenue by Location” and “Support Cost by Region.” Use the time value of money in your analysis to assess the pros and cons of each region. Also,

experiment with discount rates—one high, middle, and low to understand the effect of cost of capital and risk.

 

First:

Calculate the mean revenue per location using the Revenue_By_Location worksheet. Construct a decision tree that analyzes the possibility of achieving

the mean revenue on an ongoing basis along with a correspondingly high and low estimate. Use the following data to construct your decision tree:

 

Next:

Construct your decision tree in Excel and calculate the expected value (refer to the readings and resources in this module to identify how to perform these tasks in Excel).