Expected amount of return investment

Assignment Help Finance Basics
Reference no: EM131041218

Assume that an investment is forecasted to produce the following returns: a 10% probability of a $1,400 return; a 50% probability of a $6,600 return; and a 40% probability of a $1,500 return. What is the expected amount of return this investment will produce?

A. 4,040

B. 7,640

C. 12,140

D. 1, 540

Reference no: EM131041218

Questions Cloud

Discuss the pros and cons of outsourcing : Discuss the pros and cons of outsourcing and 3PL. Provide a discussion on the role transportation plays in 3PL operations. Substantiate your answer with referenced examples.
What is the project payback period : An investment project provides case inflow of $690 per year for eight years. What is the project payback period if the initial cost is
Calculate the compressor power input, in btu/h : On the basis of air-standard analysis, calculate: 1) the rate of heat addition, in Btu/h. 2) the pressure at the turbine exit, in psi. 3) the compressor power input, in Btu/h. 4) the velocity at the nozzle exit, in ft/s.
Solving for an annuity payment : You would like to have $1,000,000 accumulated by the time you turn 65, which will be 40 years from now. How much would you have to put away each year to reach your goal, assuming you're starting from zero now and you earn 10% annual interest on y..
Expected amount of return investment : Assume that an investment is forecasted to produce the following returns: a 10% probability of a $1,400 return; a 50% probability of a $6,600 return; and a 40% probability of a $1,500 return. What is the expected amount of return this investment w..
Databases and data warehousing in an imc plan : Examine how databases and data warehouses are used to develop effective Customer Relationship Programs (CRM). In your discussion, interpret how the use of these tools can leverage the company's IMC Plan.
Balance sheet and income statement of a company : Explain how the balance sheet and income statement of a company are affected in each of the following independent situations when the investment is accounted for using the equity method.
Calculate thermal efficiency of the cycle : The compressor pressure ratio is 10, and the turbine inlet temperature is 1400K. For k=1.4, calculate: (a) the thermal efficiency of the cycle (b) the back work ratio (c) the net power developed, in kW
What is the size of the month-end payments : a. What is the size of the month-end payments? Round to the nearest cent. b. What was the total amount paid to settle the loan? Round to the nearest cent.

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the cv

The managers of Merton Medical Clinic are analyzing a proposed project. The project's most likely NPV is $120,000, but, as evidenced by the following NPV distribution.

  Contrast primary market and secondary market transactions

Financial management is concerned with the maintenance and creation of wealth. For the risk-averse financial manager, the more risky a given course of action, the higher the expected return must be.

  Differences between cost-based and value-based pricing?

What are the differences between cost-based and value-based pricing?

  What is the difference in calculation

What is the difference between a compound annuity and a single investment that has an annuity? What is the difference in calculation?

  Describe the costing system

In at least one paragraph, describe the costing system that you would recommend Hershey use to account for its cost of goods sold and why. Include a few product costs you think would be traceable, which costs should be allocated, and how Hershey s..

  What is percy cost of common equity

Percy's CFO estimates that the company's WACC is 13.50%. What is Percy's cost of common equity? Round your answer to two decimal places.

  You are considering acquiring shares of common stock in the

you are considering acquiring shares of common stock in the madison beer corporation. your rate of return expectations

  The estimates of the manufacturing overhead and of

acitelli corporation which applies manufacturing overhead on the basis of machine-hours has provided the following data

  How much would you pay for a share of preferred stock

How much would you pay for a 10-year bond with a par value of $1,000 and a 7 percent coupon rate? Assume interest is paid annually. How much would you pay for a share of preferred stock paying a $5-per-share annual dividend forever?

  Statement of financial position

Prepare an income statement for the year ended 31st July 2013, and a statement of financial position (balance sheet) as at that date, for Ms Lee's business. These statements and income statement should where relevant follow IFRS principles.

  What is the role of a broker in security transactions how

what is the role of a broker in security transactions? how are brokers

  Complete the following stock value calculations assume that

write a brief overview concerning stock valuation.nbsp your overview should includea brief explanation of the legal

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