Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A real estate investor has the opportunity to purchase land currently zoned residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown in the following payoff table: State of Nature Rezoning Approved Rezoning Not Approved Decision Alternative s1 s2 Purchase, d1 550 -170 Do not purchase, d2 0 0 (a) If the probability that the rezoning will be approved is 0.5, what decision is recommended? Recommended Decision: What is the expected profit? $ (b) The investor can purchase an option to buy the land. Under the option, the investor maintains the rights to purchase the land anytime during the next three months while learning more about possible resistance to the rezoning proposal from area residents. Probabilities are as follows: Let H = High resistance to rezoning L = Low resistance to rezoning P(H) = 0.53 P(s1 | H) = 0.15 P(s2 | H) = 0.85 P(L) = 0.47 P(s1 | L) = 0.88 P(s2 | L) = 0.12 What is the optimal decision strategy if the investor uses the option period to learn more about the resistance from area residents before making the purchase decision? High resistance: Low resistance: (c) If the option will cost the investor an additional $10,000, should the investor purchase the option? Why or why not? The input in the box below will not be graded, but may be reviewed and considered by your instructor. What is the maximum that the investor should be willing to pay for the option? EVSI = $
Describe the core values of the organization. Why are these specific values important to the organization. Describe the benefits and purpose for an organizational vision statement.
If the consultants are paid $16 per hour and the customer waiting time is valued at $25 per hour for waiting time prior to service, should Agan expand to the two-consultant system? Explain.
Implementation, Strategic Controls, and Contingency Plans for "Flat Horse Bar & Grill" Business.
Suppose that a recently-healthy firm has just defaulted, has been liquidated, and where the firm's assets were worth $100 million before the liquidation. the liquidation process racked up a total of $10 million in legal and administrative expenses. P..
Identify and describe four conditions which, if one or more is present, dictate that competitive bidding not be employed.
In this exercise you will examine how to weigh a set of facts and make a difficult personal decision about laying off valued employees during a time of financial hardship. You will also examine your own values and criteria used in the decision-making..
Illustrates what 2 issues should be considered in combination in order to enhance the likelihood of ethical decision in the realm of product design.
You are considering a project with the following data: IRR = 8.7 percent; PI = .98; NPV = -$393; Payback period = 2.44 years. Which one of the following statements is correct given this information? The discount rate used to compute the profitability..
A manufacturing shop is designed to operate most efficiently at an output of 550 units per day. In the past month the plant produced 490 units. What was its capacity utilization rate last month?
This question is about segmenting U.S. households. Using the zip for your own address. Look up the information provided in Quick Facts by the U.S. Census Bureau. Describe the type of information provided by the Census Bureau and a provide a specific ..
What techniques should be used for successful interviewing and questioning. How important is setting to the interview. Why is preparation important and how does it affect the outcome of interviews
How would an analyst obtain data and determine the number of trips in
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd