Jose is thinking about purchasing a soft drink machine and placing it in a business office. He knows that there is a 5% probability that someone who walks by the machine will make a purchase from the...

Jose is thinking about purchasing a soft drink machine and placing it in a business office. He knows that there is a 5% probability that someone who walks by the machine will

make a purchase from the machine, and he knows that the profit on each soft drink sold is $0.10. If Jose expeccts a thousand people per day to pass by the machine and requires

a complete return of his investment in one year, then what is the maximum price that he should be willing to pay for the soft drink machine? Assume 250 working daysin a year,

and ignore taxes and the time value of money.

Jun 04, 2022

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Jose is thinking about purchasing a soft drink machine and placing it in a business office. He knows that there is a 5% probability that someone who walks by the machine will make a purchase from the...

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