Answer:
a. Project A
Explanation:
The computation of the expected return is shown below:
For Project A
= (0.6 × $200,000 + 0.4 × $50,000)
= $120,000 + $20,000
= $140,000
For Project B
= (0.7 × $150,000 + 0.3 × $30,000)
= ($105,000 + $9,000)
= $114,000
Since in the Project A, the value doubles means = $100,000 × 2
And, if the succeeding percentage is 0.6 then its failing percentage is 0.4
So as we that the project A has an high expected return than the Project B so the Project A should be invested
Answer:
The exchange rate should be approximately <u>0.340364</u> dollars per peso.
Explanation:
Spot rate = 1 Argentina Peso = $0.3600
Inflation in Argentina = 10 %
U.S. inflation = 4 %
Hence Expected rate =
1Peso (1.10) = $0.3600(1.04)
Hence
1 Peso = $0.3600(1.04) / 1.10
1 Peso = 0.340364
If the economy's real GDP doubles in 9 years, we can conclude that its average annual rate of growth is 8%.
<h3>How can we determine average annual rate of growth?</h3>
The rule of 72 can be used to determine when the real GDP of an economy would double. In order to determine the doubling time, divide 72 by average annual rate of growth.
average annual rate of growth = 72 / average annual rate of growth
72 / 9 = 8%
To learn more about real GDP, please check: brainly.com/question/15225458
<span>If local shell gasoline stations look at bp stations' prices as the primary method of determining its own prices, shell is using</span> competition-based pricing.
In this we considers costs have not much value and consider to be less important than competitor's prices, means competitor's price is important.
