Answer:
Following are the responses to the given question:
Explanation:
For the First loan payment period is value:

For the second loan payment period is value:

that's why the loan will be paid off soon.
Answer: See explanation
Explanation:
a. What is the expected value of his investment?
Based on the information given, this will be:
= (0.29 x $26000) + (0.35 x $20000) + (0.36 x $14000)
= $7540 + $7000 + $5040
= $19580
b. What should the investor do if he is risk neutral?
If the investor is risk neutral, then he should invest $20000.
c. Is the decision clear-cut if he is risk averse?
If the investor is risk averse, then it should be noted that he should not invest $20000 since the expected value of the investment will be lesser than its investment. In this case, the decision isn't clear cut if he's risk averse.
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Hope this answers your question :D
BTW this is my first answer
Answer:
1) Outside Location
2) Central Location
The profit will be the same when monthly demand is 230 cars
Explanation:
Let central location be termed as location A
Let outside location be termed as location B
<u>1. Demand 200 cars</u>
Profit- Location A = (90-30) * 200 - 7000 = $5000
Profit- Location B = (90-40) * 200 - 4700 =$5300
<u>2. Demand 300 cars</u>
Profit- Location A = (90-30) * 300 - 7000 = $11000
Let x be the number of cars where profit is same,
we will equate both the profit equations
(90-30)*x - 7000 = (90-40)*x - 4700
60x - 7000 = 50x - 4700
60x - 50x = 7000 -4700
10x = 2300
x = 2300/10
x = 230 cars
Profit- Location B = (90-40) * 300 - 4700 =$10300
Answer:
functional representative
Explanation:
A marketing research is most likely to serve as a functional representative in a new product development team.
Market research are conducted to know the viability of new goods and services in the market before it is launched. It is based on unbaised opinion of customers. It help the company to understand the target customer, pricing, other expectation of customer, which is extremely important in designing and developing new product. Therefore, market research serve as functional representative.