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based on the below analysis and attachments, please can you assist…
based on the below analysis and attachments, please can you assist me in providing four strengths and four limitations of this analysis
To analyse this decision problem, this author has reviewed two financial and quantitative methodologies to ensure that Daskalos is aware of the decision options available and the paths they may take. The potential decisions are able to be financially analysed based on the decision trees (figure 2, 3, 4), NVP calculations (figure 5 – found at end of report) and expected values (figure 2, 3, 4) as well as a sensitivity analysis (figure 6 – found at end of report) based on the discount rate (due to the need to address fluctuating market conditions). Further in this report, the qualitative methodologies will be discussed.
Comparison and Analysis
Production Set Up: In both good and bad market conditions, regardless of discount rate, the NPV for SI option is higher than that of the FI option. This suggests that the initial production set-up costs and benefits associated with the SI option are more favourable.
Prototype: In bad market conditions, the expected monetary value for the SI option’s prototype is significantly higher ($34.58 vs. $33.85). Though this is a relatively minor difference, this indicates that the SI option’s prototype performs better overall.
Retool and Modify: The SI option again outperforms the FI option in both good and bad market conditions in terms of NPV. The SI options of retooling and modification costs and benefits are more advantageous.
Ready Early: The SI option’s NPV is higher in good market conditions compared to the FI option. Although the FI option has a higher NPV in good market conditions, the difference is not as substantial.
Overall, the SI option consistently offers higher NPV values and expected monetary values across different scenarios compared to the FI option. This suggests that the SI option is a more financially viable choice due to its ability to generate better returns on investment in various situations.
Recommended course of Action
The semi-immersive (SI) prototype has the highest expected NPV and expected monetary value of all the possibilities available in this analysis (regardless of the discount range changing as seen in the sensitivity analysis). This means it is the most likely option to generate the highest financial return with a probability of 60% of being ready early meaning the product would launch int a market with 70% chance of being a good financial market. This means the SI also has the lowest risk of developing a negative economic recovery.
In addition, the semi-option is the most flexible. It can be seen to be adapted to different market conditions, which makes it a more attractive option for investors.
For example, if the market is strong, the SI can be bundled with other education equipment for potential investors such as the video conferencing software. However, if the market is poor, the SI is a more viable purchase for investors as the initial outlay of $3000-4000 per item is lower and more affordable for resource and financial poor institutions – especially as the case study specifies that within five years, there will be newer, more technology advance products available in which more prototypes and decision will need to be made.
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0.7 Expected Value Good Market Conditions S Production Set Up
Ready Early 03 Bad Market Conditions 3 0.65 Expected Value
Good Market Conditions 5 (143) Production Set Up Ex…
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0.7 Good Market Conditions NPV = S (1.50 $31.04 $44.34 0.65
Production Set Up (1.60) Ready Early $36.07 0.3 NPV =
Prototype Bad Market Conditions $16.79 S 23.45 $5….
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Good Market Conditions Production Set U – Bad Market
Conditions 0.55 Good Market Conditions $25.05 0-35 5 Good
Market Conditions . Produztion Set U – Read Eari Bad …
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