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Flauer [41]
3 years ago
8

The result of your Monte Carlo simulation for the Present Worth of a project is a normal distribution with a mean of $575,234 an

d a standard deviation of $10,245. If your boss tells you that in order to be successful, the Present Worth needs to exceed $560,000. What is the chance that the project will NOT succeed
Business
1 answer:
sveticcg [70]3 years ago
7 0

Answer:

6.85%

Explanation:

Mean = 575,234

Standard deviation = 10,245

Project will be successful when PV > 560,000

For not getting success, PV < 560,000

P (X < 560,000) = <em>P </em>(Z < (560,000-575,234)/10,245)

P (X < 560,000) = <em>P </em>(Z < -1.48697)

P (X < 560,000) = 0.0685

P (X < 560,000) = 6.85%

Therefore, the chance that the project will NOT succeed is 6.85%

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3 years ago
A firm with market power faces the following estimated demand and average variable cost functions: Qd = 39,000 - 500 P + 0.4 M -
34kurt

Answer:

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Explanation:

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3 years ago
Mike is the Director of Human Resources for a 120-employee family-owned manufacturing firm. Mike has been quite busy the last ye
inn [45]

Answer:

A. Assuming that employees would understand the content of the PowerPoint slides

Explanation:

One of the most common mistakes that can be made is assuming that the receiver on the other end of the communication chain would understand quite well, what message, you as the sender, is passing across.

In the scenario cited in the question above, the new benefit offerings that have been developed after the overhauling, of which Mike has taken his time to explain in a power point presentation just few months before employees would be required to enroll for the program, must have been misunderstand by the employees. The multiple emails reveals that the employees do not really understand the content, and this comes as a surprised to Mike. We can infer that Mike must have made the mistake of assuming that the employees would understand the content of the PowerPoint slides.

3 0
3 years ago
Herb Huskie currently has an ROI of 16%, average operating assets of $1,500,000 and NOI of $240,000. The minimum required rate o
yanalaym [24]

Answer:

c. No, the new project would have a ROI of 12%

Explanation:

Given that

NOI from new project = $30,000

Investment for a new project = $250,000

Using residual income the Huskie make this investment is shown below:-

Lower than current = NOI from new project ÷ Average operating Assets or Investments

= $30,000 ÷ $250,000

= 12%

No, the new project would have a ROI of 12%

4 0
4 years ago
Assume that at the end of 2018, Clampett, Inc. (an S corporation) distributes long-term capital gain property (fair market value
boyakko [2]

Answer: Income J. D. recognize as a result of the distribution: $45000

Explanation:

First we'll compute the share of gain on distribution,

Share of the gain on the distribution =  $40,000 - $25,000

i.e. $15,000

Now , we'll add the increase in basis from gain from property distribution,

i.e. ($15,000 original basis + $15,000 increase in basis from gain from property distribution)

So income to be recognized :3000+15000 = $ 45000

6 0
3 years ago
Read 2 more answers
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