Determine the expected monetary value of the project


Problem

A company which manufactures and sells T-shirts for sporting events, is providing shirts for an upcoming tournament. Each shirt will cost $6 to produce and will be sold for $12. Any unsold shirts at the end of the tournament can be sold for $3 apiece in the near future. The company assumes the demand for the shirts will be 1,000, 2,000, 3,000, or 4,000. The company also estimates that the probabilities of each of these sales levels occurring will be 20%, 20%, 25%, and 35%, respectively. Determine the expected monetary value of the project if the company chooses to print 2,000 shirts for the tournament.

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Business Management: Determine the expected monetary value of the project
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