Question

a project has 60% chance of a $100,000 profit and a 40% of a $100,000 loss....

a project has 60% chance of a $100,000 profit and a 40% of a $100,000 loss. Afted explicitly righting the formula, calculate tge expected montery value for the project. would you select this project and why? based on the results you get?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
project has a 20% chance of a R100 000 profit, a 45% chance of 130 000...
project has a 20% chance of a R100 000 profit, a 45% chance of 130 000 profit and a 25% chance of a R60 000 loss, what is the expected value for the project?
i. For each purchasing and demand option, calculate the profit and loss. Demand 20 40 60...
i. For each purchasing and demand option, calculate the profit and loss. Demand 20 40 60 Probability → 0.4 0.4 0.2 Purchase 35 Value 1 Value 2 Value 3 60 Value 4 Value 5 Value 6 Value 1: Value 2: Value 3: Value 4: Value 5: Value 6: ii. Using the expected value approach determine which purchasing option to adapt to achieve the maximum expected profit. Show your workings. Answer both i) and ii) in the text box below-
You plan a certain project. There is a 35% chance that you will lose $30,000, a...
You plan a certain project. There is a 35% chance that you will lose $30,000, a 40% chance you will break even, and a 25% chance that you will make $55,000. What is the expected value of your investment? Do not round.
If soda is packaged in bottles, the production cost per unit is 40 cents, the chance...
If soda is packaged in bottles, the production cost per unit is 40 cents, the chance of an accident is 1 in 100,000, and the loss if an accident occurs is $10,000. The expected accident loss per unit is 10 cents, that is 1/100,000 x $10,000. If soda is packaged in cans, the production cost is 43 cents, the chance of an accident is 1 in 200,000, the loss if an accident occurs is $4,000, and the expected accident loss...
Part 1: Dallas Star Inc.'s stock has a 40% chance of producing a 5% return, and...
Part 1: Dallas Star Inc.'s stock has a 40% chance of producing a 5% return, and a 60% chance of producing a 12% return. What is the firm's expected rate of return? What is the firm's Standard Deviation? What is the firm's Coefficient of Variation? Part 2: Calculate the required rate of return for Dallas Star Inc., assuming that (1) investors expect a 1.5% rate of inflation in the future, (2) the real risk-free rate is 2.0%, (3) expected market...
Part 1: Dallas Star Inc.'s stock has a 40% chance of producing a 5% return, and...
Part 1: Dallas Star Inc.'s stock has a 40% chance of producing a 5% return, and a 60% chance of producing a 12% return. What is the firm's expected rate of return? What is the firm's Standard Deviation? What is the firm's Coefficient of Variation? Part 2: Calculate the required rate of return for Dallas Star Inc., assuming that (1) investors expect a 1.5% rate of inflation in the future, (2) the real risk-free rate is 2.0%, (3) expected market...
A project has the following forecasted cash flows: Cash Flows Thousands of dollars C0 C1 C2...
A project has the following forecasted cash flows: Cash Flows Thousands of dollars C0 C1 C2 C3 -100 40 60 50 The investor expected rate of return is 10%. The cost of capital is 12%. Required: 1.What will you choose to be the discount rate? Why? 2.Please calculate the payback period (PP) and return on investment (ROI). 3.Please calculate NPV,PVI and IRR.. 4.Make decision based on the above calculation and explain the reasons. 5.David said that the profit is the...
A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment,...
A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 10% chance of returning $5,000,000 profit, a 30% chance of returning $1,000,000 profit, and a 60% chance of losing the million dollars. The second company, a hardware company, has a 20% chance of returning $3,000,000 profit, a 40% chance of returning $1,000,000 profit, and a 40% chance of losing the million dollars. The third company, a biotech firm, has...
Find profit or loss of 50 companies using Forbes or CNN money. Calculate the population parameters...
Find profit or loss of 50 companies using Forbes or CNN money. Calculate the population parameters for all 50 companies profit or loss Select a sample of 10 Calculate the point estimators of the sample Compare the results (Point estimators with Pop. Parameters) Use RandBetween command or Ch. 7 Random number table to select your samples Your work should include: The name of all companies List of all companies profit/loss List of your sample Point estimators and population parameters, for...
Two hairdressers work in Robert's salon. Robert and Billy Each customer has a 60% chance go...
Two hairdressers work in Robert's salon. Robert and Billy Each customer has a 60% chance go being served by Robert, and a 40% chance each of being served by Billy. Customers receive a utility of 10 from being served by Robert, and of 5 of being served by Billy. What is the expected utility for a customer at Robert's salon?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT