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Fed [463]
2 years ago
7

You can invest $100,000 into either project A or B. You estimate that A would succeed with a probability of 0.6 in which case it

doubles in value. If it fails, its scrap value is $50,000. Project B would succeed with probability 0.7, in which case it would have a value of $150,000. If it fails, project B’s scrap value is $30,000. Which project should you invest in a. ​Project A b. ​Project B c. ​Neither of the projects d. ​You cannot tell from the information presented
Business
1 answer:
yan [13]2 years ago
4 0

Answer:

a. ​Project A

Explanation:

The computation of the expected return is shown below:

For Project A

= (0.6 × $200,000 + 0.4 × $50,000)

= $120,000 + $20,000

= $140,000

For Project B

= (0.7 × $150,000 + 0.3 × $30,000)

= ($105,000 + $9,000)

= $114,000

Since in the Project A, the value doubles means = $100,000 × 2

And, if the succeeding percentage is 0.6 then its failing percentage is 0.4

So as we that the project A has an high expected return than the Project B so the Project A should be invested

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Identify whether the actions or scenarios would likely increase or decrease the natural rate of unemployment. You are currently
Oksanka [162]

Answer:

increases natural rate of unemployment

extra financial benefits for the unemployed

a large number of young people entering the labor force

an increase in union membership

Decreases natural rate of unemployment

reducing workers' collective bargaining rights

Explanation:

natural rate of unemployment is unemployment that exists when there is only structural and frictional unemployment in an economy

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.  

Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

If the unemployed are given extra benefits, there would be less incentive to find a job, thus unemployment would increase

An increase in union membership increases bargaining power of employees. this can lead to increase in wages. increase in wages reduces demand for labour and this increases unemployment. reducing collective bargaining right has the opposite effect on unemployment

a large number of people entering the labour force increases frictional unemployment

4 0
2 years ago
Lyons Company deducts insurance expense of $210,000 for tax purposes in 2018, but the expense is not yet recognized for accounti
djyliett [7]

Answer:

The total income tax expense for 2019 =152.000. Is not available in the options given by the exercise.

Explanation:

  • Tax on insurance expense deductible for accounting purposes in 2019= 70000*40%=28.000

  • Income tax expense for 2019 = 180.000-28.000=152.000

4 0
3 years ago
The two types of distribution channels are direct and ________________.
Umnica [9.8K]
The answer is (Indirect).
8 0
3 years ago
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vfiekz [6]

I HOPE IT WILL HELP YOU.

Thank you.

6 0
2 years ago
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Setterstrom Company established a petty cash fund on May 1, cashing a check for $100. The company reimbursed the fund on June 1
topjm [15]

Answer:

Following are the journal entries for Setterstrom Company;

<u>May 01</u>

Debit: Petty cash  = $100.00

Credit: Cash = $100.00

<u>Jun 01 </u>

Debit: Delivery Expense  = $31.25

Debit: Postage Expense  = $39.00

Debit: Miscellaneous Expense  = $25.00

Debit: Cash over/short (Balance amount)  = $3.00

Credit: Petty Cash ($100 - $1.75)  = $98.25

<u>Jul 01</u>

Debit: Delivery expense  = $21.00

Debit: Entertainment expense = $51.00

Debit: Miscellaneous expense = $24.75

Credit: Petty Cash ($100 - $3.25) =  $96.75

<u>Jul 10 </u>

Debit: Petty cash  = $30.00

Credit: Cash = $30.00

8 0
3 years ago
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