A company is considering between two projects: project 1 and project 2. The estimated cash flows and their probabilities of the two projects are given below.

Project 1 |
Project 2 |
||

Cash inflow |
Probability |
Cash inflow |
Probability |

$3,000 |
0.10 |
$2,000 |
0.10 |

4,000 |
0.20 |
3,500 |
0.25 |

5,000 |
0.40 |
5,000 |
0.30 |

6,000 |
0.20 |
6,500 |
0.25 |

7,000 |
0.10 |
8,000 |
0.10 |

- Calculate the expected value (revenue) from each project.
- Calculate the variance and standard deviation of the expected value from each project.
- Calculate the coefficient of variation of each project, and determine which project should the company choose.

Purpose a direct materials budget for the seasoning : Purpose a direct materials budget for the seasoning, by month an in total for the second quarter. Be sure to include both the quantity to be purchased and its cost for each month. |

Profit maximizing or cost minimizing : Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output. |

Make a segmented income statement : Prepare a segmented income statement in the contribution format for the company. Omit percentages; show dollar amounts. |

Evaluate the division''s margin : Evaluate the division's margin, evaluate the division's turnover and What is the division's return on investment (ROI)? |

Calculate the variance and standard deviation : Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project. |

Find the differential cost between the two alternatives : Which costs are relevant and which are not relevant in the choice between these two alternatives and find the differential cost between the two alternatives? |

Evaluate the nominal annual cost of trade : Nominal annual cost of trade credit - Evaluate the nominal annual cost of trade credit be if you pay 100 days after the purchase? |

Computation of number of shares to be used for requirement : Computation of number of shares to be used for required amount of requirement and How much will McDougal Entertainment receive from this stock offering |

Experience of most recent recession : When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer. |

## Market clearing price and quantityObtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce? |

## Contrast the monopolist and the monopolistic firmCompare and contrast the monopolist and the monopolistic firm Monopolistic competition is an inefficient form of organisation. Discuss |

## Problem based on utility functionProblem based on Utility Function - Problem, Answer and explain the following using a diagram which is completely labeled. |

## Affect of falling domestic investment on trade surplus andHow will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world. |

## Problem - income elasticity of demandProblem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5 |

## Capital structure decisions in perfect capital marketsIn a perfect capital market, advices for a corporate financial manager on making capital structure decisions. |

## Intermediate macroeconomicsUse the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue. |

## What will be the effect of change in policyWhat will be the effect of this change in policy on both the real and the nominal interest rate in the long - run? |

## What is bill''s opportunity cost of producing one hatWhat is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage. |

## Inflation targeting be a good policyWhy might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment |

## Which of the happing tends to occur during recessionsWhich of the followings tends to occur during recessions Cyclical unemployment tends to fall The stock markets tends to surge (experience a rapid rise in prices) Interest rates tend to fall Gross Domestic Product rises Consumer .. |

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd