99 points AND BRAINLIEST answer to the person who can do this for me. I WILL REPORT ANY DUMB ANSWERS! PLEASE HELP ASAP!
2 answers:
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Answer:
probability that make risk neutral accepting project < or 33.33 %
Step-by-step explanation:
given data
income = $600 million
legal liability = $1,200 million
to find out
what is the theta such that it is indifferent between accepting and rejecting the contract
solution
we know here that risk neutral between accept and reject contract θ value will be as that when net present value NPV of contract = 0
so
we can say NPV > 0
so ( 1- θ ) $600 Million + θ ( $1200 Million) > 0
$600 Million > $1800 θ
θ < = 33.33 %
so probability that make risk neutral accepting project < or 33.33 %
<u>Given</u>:
The cost for the children’s party at the rollerskating rink is a function of n, the number of people in the party. The cost function, C is given by
We need to determine the cost to have a party with 9 people and the cost to have a party with 20 people.
<u>Cost of having the party:</u>
From the given function, the cost of having the party for 9 people lies in the interval
Hence, the cost of having the party for 9 people is 150.
Also, from the function, the cost of having the party for 20 people lies in the interval
Hence, the cost of having the party for 20 people is 260.