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antiseptic1488 [7]
3 years ago
8

A proximity sensor attached to the tip of an endoscope could reduce risks during eye surgery by alerting surgeons to the locatio

n of critical retinal tissue.
If a certain eye surgeon expects that by using this technology, he will avoid lawsuits of $0.6 and $1.35 million 2 and 5 years from now, respectively, how much could he afford to spend now if his out-of-pocket costs for the lawsuits would be only 10% of the total amount of each suit? Use an interest rate of 10% per year.
Business
1 answer:
lilavasa [31]3 years ago
7 0

Answer:

He could afford to spend $133,411 for the device now.

Explanation:

The maximum the surgeon could afford for the device is equal to the sum of present value of the lawsuit costs that he can avoid in year 2 and year 5 which is:

+ Year 2: 600,000 * %out-of-pocket cost for the law suit = 600,000 * 10% = $60,000;

+ Year 5: 1,350,000 * %out-of-pocket cost for the law suit = 1,350,000 * 10% = $135,000.

=> The amount he can afford for the device = 60,000 / 1.1^2 + 135,000 / 1.1^5 = $133,411.

So, the answer is $133,411.

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the stock market of country A has an expected return of 8 percent, and standard deviation of expected reutrn of 5 percent. The s
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With stocks of 8% for A and 16% for B, The global minimum variance is given as 10.5 percent

<h3>How to solve for the variance</h3>

The expected return of the stock for the country a is given as 0.05

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The expected return of the stock for the country a is given as 0.16

The Weight of this country's stock market Wb  = 0.5

Expected Return of the portfolio can be calculated as

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Expected Return of the portfolio = (0.5x 0.05 ) +(0.5*0.16)

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5 0
2 years ago
What is the present value of the following set of cash flows discounted at 10 per year?
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The present value of the following set of cash flows discounted at 10 per year $104.18

<h3>What are the 3 kinds of cash flows?</h3>

There are three cash flow types that organizations should track and analyze to resolve the liquidity and solvency of the business: cash flow from operating movements, cash flow from investing activities, and cash flow from financing activities. All three are included on a company's cash flow statement.

<h3>What are cash flows illustrations?</h3>

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3 0
2 years ago
The belief that capital punishment is now unconstitutional because society has changed is an example of what doctrine? A. Evolvi
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A. Evolving standard??
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3 years ago
Bill O’Brien would like to take his wife, Mary, on a trip three years from now to Europe to celebrate their 40th anniversary. He
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Answer:

10%

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Future Value =  Present Value ((1+r)^n)

26,600 =  20,000 ((1+r)^3

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1.33^1/3 = 1+r

1.0997 = 1+r

1.0997 - 1 = r

r = 0.997 = 9.97% = 10% (rounded of to the nearest whole percentage)

8 0
3 years ago
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