Solution :
In the context, it is given Alex and J.J. both are applying for a job openings in a law firm at Chicago. Both of them got the job offer but J.J. got lower salary than Alex. The salaries are different for both J.J and Alex. Some of the possible explanations for the difference in salaries that may be related to some scenarios are :
- Alex went to higher tier law school ---- difference in education
- J.J. is reentering the workforce after two years away --- difference in experiences.
- Alex will be working with a notoriously difficult boss --- compensating differentials.
- Alex is a man and J.J. Is a woman --- economic discrimination.
Answer:
Net Present Value $ 23,373.49
Explanation:
First, we solve for the expected return:
![\left[\begin{array}{cccc}State&Return&Probability&Weight\\best-case&19,000&0.25&4,750\\base-case&12,000&0.5&6,000\\worst-case&-3,000&0.25&-750\\Total&&1&10,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7DState%26Return%26Probability%26Weight%5C%5Cbest-case%2619%2C000%260.25%264%2C750%5C%5Cbase-case%2612%2C000%260.5%266%2C000%5C%5Cworst-case%26-3%2C000%260.25%26-750%5C%5CTotal%26%261%2610%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Now, we solve for the present value of this vaue over the four-year period:
C 10,000.00
time 4
rate 0.12
PV $30,373.4935
<u>Last we subtract the investment cosT:</u>
30,373.49 - 7,000 = 23,373.49
Answer:
$82
Explanation:
As company Uses FIFO system, it will sell first two products
The cost price =($60 + $67 = 127).
So Gross profit = Selling Price-Cost Price
Gross Profit = 209-127
= $82
The gross profit for the period is $82
Answer:
$290,000
Explanation:
We start with the cost of building a replica of the house:
building a new house: $350,000
plus highest and best use $25,000
minus perceived value loss ($20,000)
minus physical deterioration ($50,000)
<u>minus building obsolescence ($15,000) </u>
appraised value $290,000
