(Please only answer e) You expect a CSR initiative to increase the firm’s reputation, but the benefits are hard to quantify.

(Please only answer e)
You expect a CSR initiative to increase the firm’s reputation, but the benefits are hard to quantify.Your best guess is that the initiative will increase shareholder value by $80 for every hour that is put into the initiative, but you can only definitely show that there will be $30 an hour worth of benefits. The cost of the initiative is $20 per hour for the first two hours, $50 per hour for the second two hours, and $80 per hour for every hour after that.
A. If your manager decides to only invest in the initiative to the point that he is certain shareholder value will be increased, then how many hours will be invested in the initiative?
B. What if the manager instead decides to go with your estimated benefits?
C. If your estimated benefits are correct then you should act on your answer to part B (i.e., operate under your estimated benefits). In this case, how much shareholder value is lost if the firm decides to act only on the definitive benefits (i.e., dedicated the number of hours in part A)?
D. Now instead assume that your estimated benefits are wrong and the true benefits are only the $30 per hour that can be definitively shown. How much value is lost if you act as if your estimated benefits are correct (i.e., overinvest in CSR)?
E. Assume you are choosing to dedicate the number of hours solved for in Part A or the number of hours solved for in part B. Also assume that the true benefits to CRS are either $80 per hour as you estimate or $30 per hour as you can prove. How confident would you have to be in your estimated benefits to make acting as if your estimates are true the value maximizing decision (i.e., how confident would you have to be to make the expected payoff from the number of CSR hours you solved for in part B higher than the payoff from the number of hours you solved for in part A)?
part e is what I am struggling with

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10