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
dybincka [34]
3 years ago
8

Your company is evaluating two projects for consideration. Project A has a 40% probability of a $3,000.00 loss and a 60% probabi

lity of a $20,000.00 gain. Project B has a 30% probability of a $5,000.00 loss and a 70% probability of a $15,000.00 gain. Which of the projects would you select based on the greatest expected monetary value?
Business
1 answer:
natima [27]3 years ago
5 0

Answer:

We should select Project A as it has a higher expected value of 10,800 compared to Project B's expected value of 9,000.

Explanation:

We need to find the expected value of both the projects, using the formula

Expected value of project A= (probability of loss * value of loss)+(probability of gain* value of gain)

Expected value of project A= (0.40*-3,000)+(0.60*20,000)

=-1200+12,000=10,800

Expected value of project A= 10,800

Expected Value of project B= (probability of loss * value of loss)+(probability of gain* value of gain)

=(0.30*-5,000) +(0.70*15,000)=-1500+10,500=9,000

You might be interested in
When the president issues a rule or regulation that reorganizes or otherwise directs the affairs of the executive branch?
oksano4ka [1.4K]
What you described is called an executive order. The president can do this whenever he wants and if it's unconstitutional then the congress and the judiciary system, more specific the Supreme Court, can overthrow this and ban the executive order because it's considered to be unconstitutional or harmful. The president can use this for almost anything.
4 0
3 years ago
Read 2 more answers
Most resources are nonrenewable, and wants and needs are limited. This is an example of?
dimulka [17.4K]

Answer:

scarcity.

Explanation:

Scarcity can be defined as an economical problem that gives the relationship between non-renewable (limited) resources and the limitless wants and needs of consumers.

Basically, it's very important that producers of goods and services make decisions that would help them on how to efficiently allocate scarce or limited resources, in order to meet the unending requirements, wants and needs of consumers.

In Economics, an example of scarcity is that most of the resources used for the manufacturing of finished goods and services are nonrenewable, and as a result, the wants and needs of the end users or consumers are limited. Thus, economists would advise that economies should decide on what to produce, how to produce, when to produce and for whom to produce due to the finite and limited nature of resources i.e the concept of scarcity.

3 0
2 years ago
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business,
JulsSmile [24]

Answer:

Ayala Architects

General Journal

April 1

Debit  : Cash $18,270

Credit : Common Stock $18,270

April 1

Debit  : Salaries expense ($381 x 4) $1,524

Credit : Salaries Payable $1,524

April 2

Debit  : Rent expense $914

Credit : Cash $914

April 3

Debit  : Supplies $1,320

Credit : Accounts Payable - Burmingham Company  $1,320

April 10

Debit  : Accounts Receivable $1,929

Credit : Service Revenue $1,929

April 11

Debit  : Cash  $711

Credit : Deferred Revenue

April 20

Debit  : Cash $2,842

Credit : Service Revenue $2,842

April 30

Debit  : Salaries expense $1,524

Credit : Cash $1,524

April 30

Debit  : Accounts Payable - Burmingham Company $305

Credit : Cash $305

Explanation:

Journal entry for the transactions have been prepared above.

4 0
2 years ago
A firm is considering two different capital structures. The first option is an all-equity firm with 75,000 shares of stock. The
Contact [7]

Answer:

$395833

Explanation:

Calculation to determine How much money is the firm considering borrowing if the interest rate is 8 percent

Amount to borrowed=(95000 / 75000) = [95000 – (X * 0.08)] / 50000

Amount to borrowed=1.26 = [95000 – (X * 0.08)] / 50000

Amount to borrowed=63333.33 = 95000 – (X * 0.08)

Amount to borrowed=31666.65 = X * 0.08

Amount to borrowed=X=31666.65/0.08

Amount to borrowed=$395833.33

Therefore How much money is the firm considering borrowing if the interest rate is 8 percent will be $395833

6 0
2 years ago
Make sure that your changes do not ___ your clients.
WARRIOR [948]
Affect your clients.
5 0
3 years ago
Other questions:
  • A married customer who has an individual account dies. The broker who handles the account learns that one of the major holdings
    15·1 answer
  • Look at the picture, which one is the correct answer?
    8·1 answer
  • The phrase laissez-faire means which of the following?
    9·1 answer
  • A professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this
    7·1 answer
  • Jbx automobiles, a global firm, builds factories to serve more than one country and lower the mne's production costs. jbx automo
    10·1 answer
  • Which option identifies the concept represented in the following scenario?
    9·1 answer
  • If costs are 85% of sales (and profit is 15%), what is the amount of extra sales needed to equal $1,200 in profit from purchasin
    11·1 answer
  • Timothy is planning the pricing strategy for his company’s products. He is directed by the management to add a premium (amount a
    12·1 answer
  • Use the following selected date and additional information from the records of Hitchcock Corporation to answer the question that
    15·1 answer
  • Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned $30,000 per year, to open up a store sellin
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!