Reference no: EM131386561
Suppose that a factory is located in a flood prone area. You have been hired to identify if the factory owner should increase the factory’s flood protection. Three options are being considered:
a) Do nothing. Damage from a moderate flood is $10,000 and $25,000 in a severe flood.
b) Perform a moderate amount of flood protection improvements for $15,000. There will be no damage from a moderate flood and $10,000 in damage from a severe flood.
c) Perform an extensive amount of flood protection for $25,000. There will be no damage from moderate or severe floods.
The annual flood risk is 0.7 for no flood, 0.2 for a moderate flood, and 0.1 for a severe flood. Assuming an interest rate of 15% and a 15 year analysis period, what would you recommend?
What is the standard deviation of the expected cost of each flood project in problem 3 above? Which option is least risky?
How are junk bonds different from other bonds
: Junk Bonds- How are junk bonds different from other bonds? As an potential investor, would you invest in junk bonds? Why or why not?
|
How does duration and other factors impact the price changes
: Sensitivity to Interest Rate Changes- Bond prices fluctuate with changes in interest rates. How does duration and other factors impact the price changes when interest rates change?
|
Calculate the excess burden of the tax
: The annual demand for liquor in a certain state is given by the following equation Qd= 500,000 - 20,000P, where P is the price per gallon and Qd is quantity of gallons demanded per year. The supply of liquor is given by the equation Qs= 30,000P. Calc..
|
Does a contract exist between conroy and blackburn
: Conroy has demanded delivery of the goods according to the terms of the offer of November 23, but Blackburn has refused. Does a contract exist between Conroy and Blackburn? Explain.
|
Perform an extensive amount of flood protection
: Suppose that a factory is located in a flood prone area. You have been hired to identify if the factory owner should increase the factory’s flood protection. Perform an extensive amount of flood protection for $25,000. There will be no damage from mo..
|
Are both necessary on every drawing you create
: Drafters generally classify dimensions in two broad categories: size dimensions and location dimensions. What is the difference between them? Are both necessary on every drawing you create? Write a paragraph explaining your findings.
|
How did this financial crash impact you and your family
: After watching the Inside the Financial Crash video, how did this financial crash impact you, your family, a career you may have been laid-off from, and/or someone you know that were affected?
|
Provide result in given situation
: Henry and Wilma now wish to void the contract, asserting that they did not realize the exorbitant price they were paying. Result?
|
If so what is the price
: Courts believe that the wholesale market price of the refrigerators is only $120,000. Do the parties have a contract? If so, what is the price? Explain.
|