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Tcecarenko [31]
4 years ago
14

Under normal conditions (70% probability), Plan A will produce $20,000 higher return than Plan B. Under tight money conditions (

30% probability), Plan A will produce $100,000 less than Plan B. What is the expected value of returns?
A. ($16,000)
B. ($2,000)
C. $28,000
D. $58,000
Business
1 answer:
Lorico [155]4 years ago
3 0

Answer:

A. ($16,000)

Explanation:

The computation of the expected value of return equal to

=  (Higher return × probability rate) - (Less return -  probability rate)

= ($20,000 × 70%) - ($100,000 × 30%)

= $14,000 - $30,000

= - $16,000

For computing the correct value we have to deduct the tighter money conditions from the normal conditions.

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Question 8 of 10
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Answer:

A. A balance sheet shows the total assets, liabilities, and owner's

equity at the end of the period

Explanation:

As we know that

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So according to the given options, the option A is correct

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3 years ago
Sykora Corp. sells $450,000 of bonds to private investors. The bonds are due in 5 years, have a 6% coupon rate and interest is p
Nikitich [7]

Answer:

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Explanation:

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Now we do the rule of three using 450,000 as 100%:

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So the actual rate would be 8,93 which is closest to 9% so that would be the answer.

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3 years ago
The day-to-day living conditions of modern Americans are very different from what they were in the 20th century. While doing res
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Answer:

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4 years ago
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