Answer:
Alternatives Airport at X Airport at Y
Buy land at X 6 -14
Buy land at Y -21 12
Buy land at X and Y -15 -2
Do nothing 0 0
probability 0.55 0.45
Payoff if you buy land at X = (0.55 x 6) + (0.45 x -) = -3
Payoff if you buy land at Y = (0.55 x -21) + (0.45 x 12) = -6.15
Payoff if you buy land at X and Y = (0.55 x -15) + (0.45 x -2) = -9.15
Payoff for doing nothing = 0
The best option is simply doing nothing. The risks are too high, the potential losses are very large and the benefits are really low.
Answer:
Explanation:
A. mean higher prices for customers but will lead to greater customer satisfaction
B. mean higher prices for customers and thus lower customer satisfaction
C. offer lower prices for customers but lead to lower customer satisfaction
D. offer lower prices for customers and lead to greater customer satisfaction
Answer:
The answer is: O'Brien's MVA is $12,000,000
Explanation:
We first take the total book value of equity $20,000,000
Then e calculate the market value of the company (stock price per share times shares outstanding) = $32 per share x 1,000,000 shares = $32,000,000
The market value added (MVA) is the difference between market value and equity value:
MVA = $32,000,000 - $20,000,000 = $12,000,000
The exam lacks the power to determine which students has studied and the students who have not studied
Explanation:
In his introductory class the professor in the motive of encouraging the students and to make them more involved in learning the subject he offers A grade to all the students
In this case the professor will lose his ability to judge the student and he will consume his time in understanding and estimating the students who has the ability to learn and the student who do not have
Answer:
The correct answer is:
$73,009 (a.)
Explanation:
Future value is the accumulated compounded interest on a certain amount (present value) invested over a specified period of time.
To calculate the future value or present value, the nominal annual interest, the duration of investment and the present value or future value respectively must be known. The relationship is shown mathematically as:
or 
where FV = Future value
PV = present value
i = nominal interest rate in percentage
n = number of compounding period
note: nominal interest rate is interest rate before inflation adjustments or interest rate before the effect of compounding
In this question, we are to determine the present value (PV), because the future value after 25 years is set as $500,000.
∴
= $73,009 (to the nearest dollars)
