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zheka24 [161]
3 years ago
13

As the operations manager for American Airlines you have decided to invest in 10 new jets for the company's fleet. There are thr

ee outcomes for this investment. What is the expected return on investment using the information below?
Business
1 answer:
Tanzania [10]3 years ago
3 0

Answer:

0.17

Explanation:

The computation of expected return in investment is shown below:-

Expected return in investment = (Expected return of outcome 1 × Probability of outcome 1) + (Expected return of outcome 2 × Probability of outcome 2) + (Expected return of outcome 3 × Probability of outcome 3)

= (0.15 × 0.50) + (0.25 × 0.30) + (0.10 × 0.20)

= 0.075 + 0.075 + 0.2

= 0.17

Therefore for computing the expected rate of return we simply applied the above formula.

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Kelly inherits land that had a basis to the decedent of $95,000 and a fair market value of $50,000 on August 4, 2019, the date o
expeople1 [14]

Answer:

A. ($1,000).

Explanation:

In the question, it is given that the fair market value of the land is $49,000 and the selling value is $48,000. So, in the given situation the selling value of the land is less than the fair market value which reflect the loss of $1,000

The $1,000 is come by subtracting the selling value and the fair market value

All other information is not relevant for the computation part. Hence, ignored it

8 0
3 years ago
One primary focus of substantive tests in the finance and investment cycle is on:
Arlecino [84]
This Finance Test is designed to help you assess your knowledge on important finance concepts, terminology definitions, and frequently used calculations. We strongly encourage any students who are planning or are beginning their FMVA certification program to take this test to determine whether you will need to take the prerequisite finance courses including Reading Financial Statements, Introduction to Corporate Finance, and Math for Corporate Finance. This is also a useful resource for employers to examine the technical knowledge of the candidates during a finance interview.

If you pass this test with 80% or above (16 questions or more), it is likely that you have a strong background in finance and are good to go ahead with our core courses!

 



 

Finance Test Questions

1. The concept of present value relates to the idea that*

The discount rate is always higher when you invest now than in the future

The discount rate is always higher when you invest in the future than now

The money you have now is worth less today than an identical amount you would receive in the future

The money you have now is worth more today than an identical amount you would receive in the future

2. The formula for calculating future value (FV) is*

FV = PV/(1+r)^n

FV = PV/(1+r)*n

FV = PV x (1+r)^n

FV = PV x (1+r)*n

3 0
3 years ago
Assume that the full-employment level of output is $2,000 and the price level associated with full-employment output is 100. Als
olya-2409 [2.1K]

Answer:

The correct answer is option a.

Explanation:

The full-employment level of output is $2,000.

The current level of output is $1,900.  

The current aggregate demand is $1,850.  

There is a need to increase the aggregate demand by $150 to reach full employment level.  

The government increases purchasing by $30.  

Increase\ in\ income\ =\ Change\ in\ government\ spending\ \times\ spending\ multiplier

\$ 150\ =\ \$ 30\ \times\ \frac{1}{1-MPC}

\$5 = \frac{1}{1-MPC}

1 - MPC = \frac{1}{5}

MPC = 1 - 0.2

MPC = 0.8

6 0
3 years ago
You are an insurance salesman. If you make 12% on all insurance sales and sold an average $35,000 / month, how much money did yo
Zigmanuir [339]

Answer:

$50,400

Explanation:

To do this first start by multiplying .12 x 35,000. The answer should be $4,200. After this multiply 4,200 by 12 in order to get the amount of money earned over a 12 month period. This will give you $50,400.

5 0
3 years ago
Cleaning products applied particularly to instruments and equipment to reduce or eliminate infectious organisms are called _____
arlik [135]
Products known as disinfectant
4 0
3 years ago
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