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Fed [463]
3 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]3 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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nata0808 [166]

Answer:

The following summarizes the solution to the given problem.

Explanation:

The given values are:

Sales,

= $660,000

Expenses,

= $255,453

Received cash revenues,

= $605,934

(a)

According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.

⇒ Net \ income=Sales-Expense

On substituting the given values, we get

⇒                     =660,000-255,453

⇒                     =404,547 ($)

(b)

⇒ Net \ Income =Received \ cash \ revenues-Expenses

On substituting the given values, we get

⇒                     =605,934-255,453

⇒                     =350,481 ($)

(c)

  • The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status.
  • It accepts the profits throughout a similar time frame.
5 0
3 years ago
The U.S. Treasury has Kleine Toymakers is introducing a new line of robotic toys, which it expects to grow their earnings at a m
nevsk [136]

Answer:

The present  value of the dividends to be paid out over the next six years if the required rate of return is 15 percent is $6.57

Explanation:

Solution:

Given that

The present value =∑ ⁿ t=1 cf/ (1 +r)t

where cf= cash flow

r =the required rate of return

t = the number of years

Now

The present value will be:

cf₁/(1+r)^1 + cf₂/(1 +)^2 + cf₃/(1+r)3 + cf₄/(1 +r)^4) + cf₅/(1 +r)^5 + cf₆/(1+r)^6

Hence,

cf₁, cf₂ cf₃ = 0 as the firm does not expect to pay dividend in the next three years

Note: Kindly find an attached document of the part of the solution to this given question

6 0
3 years ago
One key role of marketing is ______
andre [41]

Answer:

3. Looking outward by listening to customers

Explanation:

This particular role assist in retaining customers by creating new opportunities to win customer loyalty and business.

8 0
3 years ago
Pricing Strategy, Sales Variances Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,
deff fn [24]

Answer:

Check the explanation

Explanation:

Sales price variance = (Actual price - Budgeted price) * Actual units sold

Product R : ($25 - $26) * 123000 = $123000 unfavorable

Product S:($20 - $22) * 162700 = $325400 unfavorable

Product T: ($10 - $20) * 54000 = $540000 unfavorable

Sales volume variance = (Actual units - Budgeted units) * Standard price

Product R : (120000 - 123000) * 26 = $78000 favorable

Product S:(150000 - 162700) * 22 = $279400 favorable

Product T: (20000 - 54000) * 20 = $680000 favorable

Notes:

Actual units:

Product R = $3075000/ $25 = 123000

Product S = $3254000/$20 = 162700

Product T = $540000/$10 = 54000 units

6 0
3 years ago
Activity-Based Product Costing
nikklg [1K]

no matteehow much times i read this is still cant process this

5 0
3 years ago
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