Answer:
The expected profit is -$13,162.
I would not recomend the investor to make this investment.
Explanation:
The expected profit can be calculated multypling the probabilities of every outcome and the profit of each outcome, and substracting the total invevstment.
The outcomes are:
1) probability 0.39 of a $23,000 loss,
2) probability 0.24 of a $8700 profit,
3) probability 0.12 of a $31,000 profit, and
4) probability 0.25 of breaking even
NOTE: It is assumed that the outcomes does not include the initial investment.
Then, the expected profit of this investment is:
Answer:
A
Explanation:
Discount retailers sell a variety of brands brands at prices below conventional retail prices.
Examples of discount retailers in the US are Aldi and Lidl
Characteristics of discount stores include :
- very large size
- they sell a variety of goods
- lower prices
- low or no customer service
Answer:
Correct option is A $10,000
Explanation:
10% × ½ × $200,000 = $10,000.
Answer: 5% and 28%
Explanation:
In the year 2011, the U.S. had five percent of the world population and was already controlling twenty-eight percent of the world finances.
Answer:
The answer is $155,000
Explanation:
Solution
Given that:
The Malpractice claims should accumulate an estimated loss by a charge to operations as soon as both the following conditions are :
1. There is a possibility that an asset has been weakened or a liability has been incurred.
2. The loss can be reasonably estimated
Thus
The Basic premium is = $150,000
The Additional premium is = $80,000 for first year as result of claims
So,
The insurance expense in first year is given as follows:
150,000/2 + 80,000
= 75,000+80,000
= $155,000
Therefore the amount of insurance expense that should appear on the financial statements at the end of the first year is $155,000