1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
steposvetlana [31]
3 years ago
11

Global Gas International offers to contract the Halidurton Heavy Construction Corporation to build an oil pipeline from Canada t

o New Orleans that will provide Halidurton ​$600 million in income. The probability that the oil pipeline will​ leak, causing environmental damage is theta. If​ so, the legal liability will be ​$1 comma 200 million. If Halidurton is risk neutral and liable for the damages from a​ leak, what is the theta such that it is indifferent between accepting and rejecting the​ contract?
Mathematics
1 answer:
LenKa [72]3 years ago
3 0

Answer:

probability that make risk neutral accepting project < \frac{1}{3} 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 < \frac{1}{3} = 33.33 %

so probability that make risk neutral accepting project < \frac{1}{3} or 33.33 %

You might be interested in
The length of a rectangle is 10 dm more than its width and its perimeter is 80 dm. find its dimensions.​
cluponka [151]

Answer:

the width is 15 and length  is 25

Step-by-step explanation:

4 0
3 years ago
The formula y y-y1=m(x-x1) please tell me what is m
grandymaker [24]

Answer:

There is no value in M

Step-by-step explanation:

The equation is undefined.

6 0
3 years ago
Use an equation to find the value of k so that the line that passes through the given points has the given slope. (
shutvik [7]

The formula of a slope:

m=\dfrac{y_2-y_1}{x_2-x_1}

We have the points (4, -4) and (k, -1) and the slope m = 34.

Substitute:

\dfrac{-1-(-4)}{k-4}=34\\\\\dfrac{3}{k-4}=\dfrac{34}{1}\qquad|\text{cross multiply}\\\\34(k-4)=3\qquad|\text{use distributive property}\\\\34k-136=3\qquad|+136\\\\34k=139\qquad|:34\\\\k=\dfrac{139}{34}

3 0
3 years ago
Please help me please hurry
Naya [18.7K]

Answer

899

Step-by-step explanation:

99

8 0
2 years ago
Check Register Balance $526.13 Bank Statement Balance $531.38 Outstanding Checks $62.45 and $18.75 Service Charges $75.95 What i
mrs_skeptik [129]
WOULD IT BE THE FIRST ONE ($526.13)

7 0
3 years ago
Other questions:
  • What is the volume of a cone with a radius of 18 cm and a height of 10 cm? Use 3.14 for pi. Round your answer to the nearest ten
    5·2 answers
  • The height of the Eiffel Tower is 1050 feet. From the top, the angle of depression to a soccer ball on the ground is 20 degrees.
    11·1 answer
  • Is the underlined verb in the sentence regular or irregular? The Spanish photographer created a display of her photographs for t
    15·1 answer
  • Wendy buys a dress that costs $30.00 she pays 8% sales tax
    6·1 answer
  • SOMEONE ANSWER PLEASE!!!!!
    9·2 answers
  • Find the missing side length, 28,25 and x
    5·1 answer
  • HELP HELP HELP pls on both slides i'm lost and they are due tonite
    9·1 answer
  • Which of the following descriptions best defines the term logistic growth?
    12·1 answer
  • The vertices of a rectangle are listed below.
    7·1 answer
  • Is y= 2X +7 a function
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!