Answer:
1. Please find it attached.
If both of them don't get lawyers they will each make half of the $5 million being $2.5 million a piece.
If one side hires a lawyer and the other doesn't, the side with the lawyer will win 0.9 of $5 million which is $4,500,000. However they would have paid the lawyer $200,000 so that payout drops to $4,500,000. The other would make 0.1 which is $500,000.
If they both get a lawyer they will each get half which is $2,500,000 but they would both have paid their lawyers $200,000 a piece so the net payout would be $2,300,000.
2. The Nash Equilibrium is the alternative that it would not serve either party to deviate from as it serves them both well. The Nash Equilibriums would be If both don't get a lawyer or if both get a lawyer.
3. Yes they would because without lawyers they would make more money as they would not have to pay the $200,000 in fees.
Answer:
14.4%
Explanation:
Calculation for what will be your expected rate of return on the stock.
Expected rate of return on the stock=12% + 1(5%-4%) + .7(8%-6%)
Expected rate of return on the stock=12%+1(1%)+.7(2%)
Expected rate of return on the stock=12%+1%+1.4%
Expected rate of return on the stock=14.4%
Therefore your expected rate of return on the stock is 14.4%
Answer:
(D) franchising.
Explanation:
The franchising is an innovative idea to increase the sales of the company brand through which the company can able to capture maximum market size across the work. This strategy works with the motive to expand the business.
In this, there are two parties i.e franchiser and franchisee. The franchiser sells its logo, name, rights to the outlets that we called franchisee. For this, the franchiser gets the lump sum payment and profit share, etc.
Answer:
Option B: Debit card
Explanation:
Checking account is simply a type of an account which helps it users to be able to pay bills. It is an account into which an individual can deposits money and from which an individual also withdraws money by the use of check (writing checks) or using a debit card.
A debit card is a type of withdrawal card that helps an individual to withdraw cash from an ATM or to pay directly for goods or services at stores and restaurants and others. It is also defined as a plastic card used to withdraw cash from a checking account or make payments electronically without having to write a check.
Answer:
a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.
Explanation:
a.
The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.
b.
When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.
c.
The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.
d.
Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.
