Blackbird brownines and confections is looking to hedge its


Blackbird Brownines and Confections is looking to hedge its bets in the face of economic uncertainty and ensure that it can continue to grow. The company hires a business analyst to identify four different business investments they could make with 25% of their current cash to help them continue to grow through the recession. What is the expected profit or loss for each choice, and what is the optimal investment?

Investment Economy gains (0.1) Steady (0.3) Declines(0.6)

Revamp distribution $12,860 $4,200 $3,450

Revamp kitchens $12,040 $6,960 $1,200

Online Store $10,950 $8,660 $450

 

Mobile sales truck $15,600 $13,480 -$9,850

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Operation Management: Blackbird brownines and confections is looking to hedge its
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