What would be the expected monetary value for Avalia Corp using the probability method? Probability 0.20 0.30 0.15 0.35 Cash Inflows $210,000 $180,000 $170,000 $50,000 A.$610,000 B.$139,000 C.$42,000 D. $ 152, 500
Expected monetary value
Probability (a) Cash flow (b) Expected value(a*b)
0.2 $210000 $42000
0.3 $180000 $54000
0.15 $170000 $25500
0.35 $50000 $17500
Total $139000
Expected monetary value( B ) $139000
What would be the expected monetary value for Avalia Corp using the probability method? Probability 0.20...
ment sis phone tower, they use mu value method, the payback period metru, By using these methods, they can ensure a wise allocation UITJE time minimize the risks involved in the investment decision. LO3 Suppose that Neighborhood Communications is considering building a new cell phone tower and has gathered the following information: $600,000 Purchase price Residual value $100,000 Desired payback period 3 years Minimum rate of return 15% The cash flow estimates are as follows: Net Cash Projected Cash Year...
Dartis Tools Co. is considering investing in specialized equipment costing $610,000. The equipment has a useful life of five years and a residual value of $69,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below: Year 1 $210,000 2 159,000 3 160,000 4 95,000 5 136,000 $760,000 What is the accounting rate of return on the investment? (Round your answer to two decimal places A. 12.90% B. 16.19% C. 6.45% D....
A manufacturer of designer jeans must decide whether to build a large factory or a small factory in a specific location. The profit per pair of jeans manufactured is estimated as $10. A small factory will incur an annual cost of $200,000, with a production capacity of 50,000 pairs of jeans per year. A large factory will incur an annual cost of $400,000, with a production capacity of 100,000 pairs of jeans per year. Four levels of manufacturing demand are...
1. Dan Corp. issues 60,000 of $3 stated value common stock for Building. The building has a market value of $220,000 and asking price of $240,000. Paid in Capital amount is: * a. $220,000 b. $180,000 c. $40,000 d. $20,000 2. Unearned Revenues is in the form of: * a. A contingency that is reasonably likely to occur b. Advanced payment by customer c. An oral agreement d. A standing agreement 3. On July 1, 2019, Alex Company borrows $30,000...
Which of the following is the correct method to use to calculate firm value using the WACC method? a. Discount the expected cash flows based on all-equity financing at the overall cost of capital for the firm, E( rfirm) b. Calculate the expected cash flows for the firm based on the firmʹs expected capital structure, and then discount them at the firmʹs weighted average cost of capital, WACC. c. Calculate the expected cash flows for the firm based on the...
3. The following table lists the probability distribution for cash prizes in a lottery conducted at Lawsons Department Store; Prize(S) Probability 0.45 0.30 100 0.20 500 0.05 If you buy a single ticket, what is the probability that you will win: 10 a. Exactly $100? b. At least $10? c. No more than $100? d. Compute the mean, variance, and standard deviation of this distribution. 4. In a binomial situation, n = 4 and p = 0.25. Determine the probabilities...
Suppose X has a symmetric continuous probability distribution with E(X)=82, and P(X>100) =0.2, what is P(64<X<100)? (Hint: Remember E(X) or expected value of X, is the average of X) A. 0.2 B. 0.3 C. 0.4 D. 0.6 30% of all corporations are publicly traded. We want to figure out the probability that in a sample of 500 companies, there are between 134 to 152 publicly traded companies. Which one of the following Normal approximation is the answer? (Hint: Don’t forget...
This is one problem, please do the statement of cashflow in
both direct and indirect method
Dice Corp's balance sheet as of December 31, 2018 and 2017 is presented below. Please prepare the changes in assets and liabilities December 31 2018 2017 195,000 Current investments Accounts receivable Allowance for doubtful accounts Note A Note B 360,000 50,000 600,000 20,000 300,000 1,000,000 450,000 100,000 15,000 215,000 1,730,000 Prepaid expenses Note C Note D Plant assets Note E Total assets 720,000 10,000...
Acme Inc. is considering marketing one of two new video games: Galaxy Wars or Quasar Trek. Galaxy Wars is a distinctive game and appears to have no competition. Estimated profits (in thousands of dollars) under high, medium, and low demand are as follows: Galaxy Wars High Medium Low Profit 900 850 250 Probability 0.20 0.55 0.25 Quasar Trek is a less distinctive game and is assumed that it may experience some market competition. Estimated profits (in thousands of dollars) with...
Notice question d which is " What decision would beverly make if
she wanted to minimize her expected cost ( Monetary value ) ?
Thus in D we have to do the following
But in the last column instead of 14715 and 14355 (
which is the answer) shouldn't it be 15030 and 14430 respectively
?
the and the the or the M USICI U Uslon? Beverly Mills has decided to lease a hybrid car to save on gasoline expenses...