Determine the mean and standard deviation of present worth

Assignment Help Business Economics
Reference no: EM13157189

An investment opportunity has the potential of generating yearly revenues with the associated probabilities for the next five years as shown below. The salvage value at the end of five years is 0. The potential revenue in any given year is independent of any other year. Determine the mean and standard deviation of the present worth, using an interest rate of 12%.

Potential Revenue, $

Probability


20,000

0.30


30,000

0.40


50,000

0.20


60,000

0.10

 

Reference no: EM13157189

Questions Cloud

How many whole drops are required to dissolve the calcium : how many whole drops (.05 mL/drop) of 6 M HCl are required to dissolve the calcium carbonate? b) What is the Ca concentration when this is dissolved and diluted to 100.00mL
Income statement for coca : How to do income statement for Coca - Cola for last 5 years, analyze their performance, and ratios for competition?
What events in the viral life cycle take place in nucleus : What events in the viral life cycle take place in the nucleus?
Project charter to revamp the compensation : Be clear about these assumptions and data for your professor to follow along. Construct a project charter to revamp the compensation and benefits package.
Determine the mean and standard deviation of present worth : The salvage value at the end of five years is 0. The potential revenue in any given year is independent of any other year. Determine the mean and standard deviation of the present worth, using an interest rate of 12%.
You are the guerreras banker : Suppose you are the guerreras banker and they have given you this income statement would you congratulate them on their net income if so explain why if not how would you advise them
Which is the most important barrier to pathogen entry : Which of the following is the most important barrier to pathogen entry?
When strontium bromide is heated in a stream of chlorine gas : When strontium bromide (SrBr2) is heated in a stream of chlorine gas, it is completely converted to strontium chloride
Which is most accurate regarding blood vessels : Which of the following is most accurate regarding blood vessels leading to a fresh wound?

Reviews

Write a Review

Business Economics Questions & Answers

  What can you do to meet the customers required reliability

Your system (Aircraft, etc.) has a reliability of .80 after operating for 1000 hours. What can you do to meet the customers' required reliability? Explain in detail.

  Focus on short-run as well as long-run equilibrium

how the economy moves to a new equilibrium. Focus on short-run as well as long-run equilibrium.

  Explain how fed use of its three tools of monetary policy

Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.

  Describe briefly one trade topic identified by the wto

Describe briefly one trade topic identified by the WTO on the website. And, what did you learn from the Web site about the WTO.

  What present expenditure for the auxiliary equipment

The salvage value of either alternative is negligible at any time. If MARR is 10% per year, what present expenditure for the auxiliary equipment can plan you justify spending? Assume that you need the heating system infinitely.

  Find the sub game perfect equilibrium

Can you find a Nash equilibrium in pure strategies that is not efficient. Find the sub game perfect equilibrium as a function.

  Describe different methods of depreciation an equipment

For what rate of inflation, both the options are equally attractive ? Describe two different methods of "Depreciation" an equipment / plant may undergo (with numerical example)

  How much is imported in barrels of oil and it value per year

Draw the US demand and supply curves for oil and indicate how much is imported in barrels of oil and its value per year.

  Consider a small country that exports steel

Consider a small country that exports steel. Assume that a "pro-trade" government deicdes to subsidize the export of steel by paying

  Change as income increases in this problem

Elucidate how do the ratios Px*X/I also Py*Y/I change as income increases in this problem.

  Two consumers jorge and admen

Two consumers Jorge and Admen, together own 1,000 baseball cards and 5,000 Pokémon cards.

  Compute the resulting equilibrium price quantity combination

Compute the resulting equilibrium price quantity combination for every industry. Illustrate your answer with a suitable graph.

Free Assignment Quote

Assured A++ Grade

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