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Blababa [14]
3 years ago
9

An aerospace company has submitted bids on two separate federal government defense contracts. The company president believes tha

t there is a 40% probability of winning the first contract. If they win the first contract, the probability of winning the second is 65%. However, if they lose the first contract, the president thinks that the probability of winning the second contract decreases to 49%.
1. What is the probability that they will lose both contracts?
2. What is the probability that they win only one contract?
3. What is the probability that they win both contracts?
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
4 0

Answer:

1. What is the probability that they will lose both contracts?

probability of losing both contracts = (1 - 40%) x (1 - 65%) = 21%

2. What is the probability that they win only one contract?

probability of winning 1 contract = 1 probability of winning both contracts - probability of not winning any contract = 1 - 21% - 26% = 53%

3. What is the probability that they win both contracts?

the probability of winning both contracts = probability of winning first contract x probability of winning second contract = 40% x 65% = 26%

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Answer:

Cognitive dissonance

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Sister Pools sells outdoor swimming pools and currently has an aftertax cost of capital of 11.6 percent. Al's Construction build
Aloiza [94]

Answer:

$1,952 (Positive NPV)

Explanation:

Year   Annual CF ($)   PV factor at 10.30%    PV of Cash Flow ($)

1               17,000                  0.90662                         15,413

2              17,000                  0.82196                          13,973

3              17,000                   0.74520                         12,668

4              17,000                   0.67561                          11,485

5              17,000                   0.61252                          10,413

6              17,000                   0.55532                          9,441

7              17,000                    0.50347                          8,559

TOTAL                                    1.73554                          81,952

Net Present Value (NPV) = Present value of annual cash flows - Initial Cost

Net Present Value (NPV) = $81,952 - $80,000

Net Present Value (NPV) = $1,952 (Positive NPV)

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