### What is the maximum amount of money

Assignment Help Risk Management
##### Reference no: EM13208653

Suppose that the probability of an earthquake in Southern Illinois is 30%. Your are the owner of a company in Southern Illinois. If an earthquake occurs, you expect that the damage to your manufacturing facility is \$20 million. If you reinforce your facility, the damage expected if an earthquake occurs will be lowered to \$10 million. Reinforcing the facility will cost \$3 million. In 70% of the places where and earthquake has occurred, a fault line was 1 mile or less away. However, 30% of the places where an earthquake has not occurred are also within 1 mile of a fault line. A seismic test can be conducted to precisely locate the nearest fault line to your facility. Suppose earthquakes are predicted based on the seismic test information;i.e., an earthquake is predicted if a fault line is 1 mile or less away, and no earthquake is predicted otherwise. What is the maximum amount of money you are willing to pay for the seismic test?

### Previous Q& A

#### Define the reaction mechanisms and draw resonance structures

Draw all products of the reactions of 4-Chloro-2-methylpentane with NaCN and AgCN. Identify the reaction mechanisms and draw resonance structures

#### What is the likely effect on the equilibrium price

Suppose a recent and widely circulated medical article reports new benefits of exercise. Simultaneously, the price of the parts needed to make bikes falls. What is the likely effect on the equilibrium price and quantity of exercise bikes sold

#### Explain what volume will the gas occupe at stp

capacity contains fluorine gas at a pressure of 160. lb/in^2 at 26° C. What volume will the gas occupe at STP? (1 atm = 14.7 lm/in^2, F = 19.00 g/mol)

#### Provide an economic interpretation for each equation

There is a single difference: we've changed the exponent on At in the production function of the output good so that there is now a diminishing marginal product to ideas in that sector. 1. Provide an economic interpretation for each equation.

#### Estimates of the short- and long-term growth

Are there potential conflicts of interest between inside stockholders and outside stockholders-Can the insiders take advantage of you somehow

#### Explain what mass of oxygen does the tank contain

Consider the steel tank whose volume is 42.0 L and which contains oxygen gas at a pressure of 18,000 kPa at 23° C. What mass of oxygen does the tank contain?

#### Determine the equilibrium price and quantity in each country

1. Determine the equilibrium price and quantity in each country when the two countries are able to trade. 2. Calculate the consumer surplus, producer surplus, and total surplus for each country when the nations are able to trade

#### Explain high performance liquid chromatography

What is the difference between gradient elution and isocratic elution in High performance liquid chromatography

#### Explain molten magnesium metal to form solid titanium

At 900 degrees C, titanium tetrachloride vapor reacts with molten magnesium metal to form solid titanium metal and molten magnesium chloride

#### Fill in the missing data by question marks

Consider the data in the table below for the three independent health services organizations: Sales Total Variable Fixed Total Profit Costs Costs Costs a. \$2,200 \$1,400 \$2,000 b. 1,000 \$1,700 \$2,400 c. \$4,500 \$600 \$400

### Similar Q& A

#### Risk management and measurement issues

Presentation of work in the prescribed format, free from spelling and grammatical errors - higher volume of traffic-both people in cars and cargo in trucks- a safe financial system will help generate higher stable economic growth

#### What are the companys top risks

What are the company's top risks, and what is management doing about it and what size operating or cash loss has management and the board agreed was tolerable?

#### Determine the average risk premium

Here are stock market & Treasury bill percentage (%) returns between 2006 and 2010: Determine the average risk premium

#### Overestimate the value of high-risk projects

Cost of Capital Suppose a firm uses its company cost of capital to evaluate all projects. Will it underestimate or overestimate the value of high-risk projects?

Discuss and explain the components of business risk, and discuss how the components affect the variability of operating earnings (EBIT).

#### Find the correct cost of capital

Find the correct cost of capital for evaluating a new generation of electrical equipment and Conglomerate Company has a cost of capital, based on the CAPM, of 17%

#### Discuss concepts of risk and management

Risk lies at all levels of business activity. There are many different kinds of risks within an management as well as ways to manage risks.

#### How microsoft change its capital structure

Find the weighted average cost of capital and if Microsoft wants to change its capital structure (i.e., lower their WACC), what should it do?

#### A project report on mutual funds

This project report speaks of the core and future aspects of Mutual Funds and the present challenges to cope with.

#### What is the impact from an investor position

Discuss this practice from as insurance standpoint what are alternative and assess other financial intermediaries and their capital needs.

#### Calculate the amount of profit

Explain how this leader in your firmcan speculate on the belief that the euro will be \$1.41 in 12 months and calculate the amount of profit that can be earned and the percentage return achieved.

#### Compute the dollar value of the futures contract notional

compute the dollar value of the futures contract notional and the number of contracts to buy/sell for optimal protection