You own a car dealership and are trying to decide how to configure the showroom floor. The floor has 1 answer below »
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You own a car dealership and are trying to decide how to configure the showroom floor. The floor has 2000 square feet of usable space. You have hired an analyst and asked her to estimate the NPV of putting a particular model on the floor and how much space each model requires: In addition, the showroom also requires office space. The analyst has estimated that office space generates an NPV of $14 per square foot. What models should be displayed on the floor and how many square feet should be devoted to officespace?
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