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kykrilka [37]
4 years ago
14

Kirsten is trying to decide where to go for her well earned vacation. She would like to camp, but if the weather is bad, she wil

l have to go to a motel. Given the costs and probabilities of bad weather given below, which destination should she choose? Camping Cost Model Cost Probability of bad weatherNevada $20 $80 0.2Oregon $15 $85 0.4California $30 $95 0.1a. All 3 of themb. Californiac. None of themd. Nevadae. Oregon
Business
1 answer:
Vera_Pavlovna [14]4 years ago
5 0

Answer:

net total value of expense = cost of camping + prob. of bad weather x motel cost

NV for different areas

Nevada = 20+0.2x8 = 36

Oregon =15+0.4x85 = 49

California = 30+0.1x95 = 39.5

The children should choose Nevada as it has lowest value of potential cost.

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Sapling Independent is a small bank located in Hong Kong. Sapling Independent is interested in increasing the number of mortgage
Lyrx [107]

Answer:

23,130,000 HK

Explanation:

Loan amount taken by sapling = 12,000,000 euros

Loan amount taken by sapling in Dollars at an exchange rate of 9 HK dollars/euros:

= 9 × 12,000,000

= 108,000,000 HK

Amount to be repaid by sapling at i= 1.5%:

= 12,000,000(1 + 0.015)

= 12,180,000 euros

Amount to be repaid by sapling in HK Dollars at an exchange rate of 7.5 HK dollars/euro:

= 7.5 × 12,180,000

= 91,350,000 HK

Amount earned by lending at i = 6%:

= 108,000,000(1 + 0.06) HK

= 114,480,000 HK

Net profit earned = Amount Earned - Amount Repaid

                             = 114,480,000 HK  - 91,350,000 HK

                             = 23,130,000 HK

Net profit earned in Euros = (23,130,000 ÷ 7.5) euros

                                            = 3,084,000 euros

4 0
4 years ago
If C(x) is the cost of producing x units of a commodity, then the average cost per unit is c(x) = C(x)/x. Consider the cost func
xxTIMURxx [149]

Answer: $2,98,491.106 ⇒ Total cost of production

Explanation:

Given that,

Total cost of production at x = 1000 units

C(x) = 2000 + 170x + 4x^{\frac{3}{2} }

C(1000) = 2000 + 170(1000) + 41000^{\frac{3}{2} }

             = 2000 + 170000 + 126491.106

             = $2,98,491.106 ⇒ Total cost of production

So, above is the cost of producing 1000 units.

3 0
4 years ago
The Beranek Company, whose stock price is now $30, needs to raise $13 million in common stock. Underwriters have informed the fi
Bumek [7]

Answer:

858,085 shares must be sold

Explanation:

Net amount to be raised                   $ 13,000,000

Add: floatation expenses                           165,000

Amount to be available after

payment of underwriting compensation             20,165,000          

No of shares to be issued at 23.50 $      = 20,165,000/23.50 =  shares, rounded off to 858,085 shares.

858,085 shares must be sold

5 0
3 years ago
Suppose the return on the market is expected to be 7%, a stock has a beta of 1.5, and T-bill rate is 3%. The SML would predict a
andrezito [222]

Answer:

2%.

Explanation:

<u>Calculation of the alpha of the stock</u>

Implied Alpha Formula = Actual return - Expected return as per CAPM

Implied Alpha = 11% - 9%

Implied Alpha = 2%

Since you believe the stock will provide instead a return 11%, its implied alpha will be 2%.

3 0
3 years ago
Tom and his family have developed a successful business selling fertilizer to other farmers in his area, consisting of rich, org
VMariaS [17]

Abc's efforts are an example of<u> "threats of substitute products or services" </u>in porter's model for industry analysis.


Porter’s threat of substitutes definition is the accessibility of an item that the purchaser can buy rather than the industry’s item. A substitute item is an item from another industry that offers comparative advantages to the shopper as the item created by the organizations inside the business. As indicated by Porter's 5 forces, threat of substitutes shapes the focused structure of an industry.

6 0
3 years ago
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