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e-lub [12.9K]
2 years ago
9

Eric works at an electronics store in a mall. Eric doesn't like to work hard, and it costs him $100 to do so. Eric's employer ca

nnot observe whether Eric works hard. If Eric works hard, there is a 90% probability that electronics goods profits will equal $400 a day and a 10% probability that electronics goods profits will equal $100 a day. If Eric shirks, there is a 90% probability that electronics goods profits will equal $100 a day and a 10% probability that electronics goods profits will equal $400 a day. Suppose Eric is paid $200 if electronics goods profits are $400 a day and $50 if electronics goods profits are $100 a day. Eric will _____ because the net gain of _____ from shirking is _____ than the net gain of _____ from working hard.
Business
1 answer:
SCORPION-xisa [38]2 years ago
7 0

Answer: work hard; $65; less; $85

Explanation:

The following can be deduced from the question:

The Expected profit from working hard will be:

= (90% × $200) + (10% × $50)

= (0.9 × $200) + (0.1 × $50)

= $180 + $5

= $185

Then, the profit will be the difference between revenue and coat which will be:

= $185 - $100

= $85

Then, the expected profit from shirking will be:

= (90% × $50) + (10% × $200)

= (0.90 × $50) + (0.10 × $200)

= $45 + $20

= $65

Then, the profit will be:

= $65 - $0

= $65

Eric will (work hard) because the net gain of ($65) from shirking is (less) than the net gain of ($85) from working hard.

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The correct option is $1.14

Explanation:

D1=D0*(1+g)

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D2=$0.621*1.15

D2=$0.71415

We need to apply the discount factor to each of the dividends,the discount factor is 1/(1+r)^n

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2 years ago
A steering committee identifies and assesses all possible systems development projects that the organization could undertake.
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3 years ago
Shocker Associates sold office equipment for cash of $162,000. The accumulated depreciation at date of sale amounted to $123,000
siniylev [52]

Answer:

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Explanation:

Provided information,

We have been provided that selling value of equipment = $162,000

Gain recognized on sale = $16,000

Gain = Selling price - Book Value

$16,000 = $162,000 - Book Value

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Answer:

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c) A system with higher efficiency ratios will always have higher utilization as these systems will have lesses number of failures

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