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Lynna [10]
4 years ago
12

Your business partner has proposed you to join him (her) in investing $100000 each in a new enterprise. assume that you have tha

t amount of money available. in case of success your return is $40000 but in case of failure you lose $20000. your analysis shows P40=0.3 of success and P-20=0.7 of failure.
would you invest?what is your investment risk preference and analysis?
Business
1 answer:
hjlf4 years ago
7 0

Answer:

I wouldn't invest.

Risk preference at least 50-50 chance of gain and loose

Explanation:

case of success the return i get is $40000

case of failure i lose $20000.

My analysis shows P40=0.3 of success

And P-20=0.7 of failure.

The probability of a loose is much bigger than the probability of a gain.

So I can't bear the loose of loosing 7 times if about 20000 and gaining 3 times of about 40000 it doesn't balance.

My loose accumulating to 140000

While my gain is 120000.

I can't invest

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A property is sold for $350,000. The buyer has paid $12,000 as earnest money and is obtaining a 70% loan. Based on the informati
Zolol [24]

Answer:

$93,000

Explanation:

Data provided in the question:

selling cost of the property = $350,000

Earnest money paid = $12,000

Percentage of loan obtained = 70%

Now,

The amount of loan obtained = 70% of $350,000

= $245,000

Therefore,

Amount to be paid by self

= selling cost of the property - amount of loan obtained

= $350,000 - $245,000

= $105,000

Thus,

Additional cash the buyer will have to bring to the closing day

= Amount to be paid by self - Earnest money paid

= $105,000 - $12,000

= $93,000

7 0
3 years ago
Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental ag
andreyandreev [35.5K]

}{y}[/tex]Answer:

For part A) The <u>entire 2019 is deductible.</u>

For part B) $9,075

Explanation:

FOR PARTE A) we know the equation is:

\frac{24,200}{y} number of months where y is 12 (which means the entire year) and the number of months will be also 12. So the equation will be:

\frac{24,200}{12} 12 and the answer will be 24,200 which means the entire year is deductible.

FOR B) the equation to be used  will be replaced by 24 (two years) and the number of month will be 9.

so the equation is:

\frac{24,200}{24} 9

the answer wil be $9,075

5 0
4 years ago
What is a commodity?
Rashid [163]
Commodity means a product that can can be bought and sold
7 0
3 years ago
Leas Corporation staffs a helpline to answer questions from customers. The costs of operating the helpline are variable with res
Nikolay [14]

Answer:

The average cost of operating the helpline per call at a volume of 25,300 calls in a month will be $18.10

Explanation:

The costs of operating the helpline are variable with respect to the number of calls in a month. At a volume of 25,000 calls in a month, the costs of operating the helpline total $452,500.

The average cost of operating the helpline per call = $452,500/25,000 = $18.10

At a volume of 25,300 calls in a month, The average cost of operating the helpline per call does not change but the total costs of operating the helpline increase because the costs of operating the helpline are variable.

Total costs of operating the helpline = $18.10 x 25,300 = $457,930

7 0
3 years ago
It costs Marigold Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit
olasank [31]

Answer:

$6,200 Increase

Explanation:

Given that,

Costs Marigold Company = $26 per unit

Fixed cost = $8

Variable cost = $18

Selling price = $38 per unit

Foreign wholesaler offers to purchase 6200 units at $21 each.

Shipping costs = $2 per unit

Effect on net income:

= Sales - Variable cost - special shipping cost

= (6,200 × $21) - (6,200 × $18) - (6,200 × $2)

= $130,200 - $111,600 - $12,400

= $6,200 Increase

7 0
4 years ago
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