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Case
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Reference no. UVA-QA-0459
Published by: Darden Business Publishing
Published in: 1994

Abstract

H Franklin, owner of the Commerce Tavern, is considering the possibility of changing his long-standing policy of not accepting credit- card charges from his clients. The decision is complicated by the presence of two key uncertainties: a contingent bank-fee schedule and several nonquantifiable effects. The case can serve to reinforce the tools of decision analysis, discounted cash flows, and sensitivity analysis and to explore the role of decision analysis in the decision- making process.

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Abstract

H Franklin, owner of the Commerce Tavern, is considering the possibility of changing his long-standing policy of not accepting credit- card charges from his clients. The decision is complicated by the presence of two key uncertainties: a contingent bank-fee schedule and several nonquantifiable effects. The case can serve to reinforce the tools of decision analysis, discounted cash flows, and sensitivity analysis and to explore the role of decision analysis in the decision- making process.

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