Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

An entrepreneur has a project that requires a $10,000 initial investment. The project is risky and will produce revenue of $16,000 with probability 0.75 and revenue of $12,000 with probability 0.25. If the entrepreneur invests, then what is her expected revenue, minus the initial investment?

A. $5,000

B. $4,500

C. $8,000

D. $1,350

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M945002

Have any Question? 


Related Questions in Basic Finance

Do you think the new dialysis center will be able to

Do you think the new Dialysis Center will be able to attract more patients? What impact would additional volume have on the facilities allocation decision?

On december 18 2015 stephanie corporation acquired 100

On December 18. 2015. Stephanie Corporation acquired 100 percent of a Swiss company for 4.0 million Swiss francs (CHF): which is indicative of book and fair value At the acquisition date, the exchange rate was $1.00 = CH ...

Discuss or define briefly the following terms and

Discuss or define briefly the following terms and concepts: means of payment, store of value, unit of account, barter, monetary aggregates, liquidity, nonfinancial debt, electronic funds transfer system, and risk.

You are running a hot internet company analysts predict

You are running a hot Internet company. Analysts predict that its earnings will grow at 20% per year for the next five years. After that, as competition increases, earnings growth is expected to slow to 6% per year and c ...

Why might targeting the money supply lead to lower output

Why might targeting the money supply lead to lower output growth than targeting the rate of interest? Consider your responses to Problems 1 and 2 before you answer. Problems 1 Draw a graph of money demand and money suppl ...

Problem 1you just inherited some money and a broker offers

Problem 1 You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the ...

Your firm sells for cash only but it is thinking of

Your firm sells for cash only; but it is thinking of offering credit, allowing customers 90 days to pay. Customers understand the time value of money, so they would all wait and pay on the 90th day. To carry these receiv ...

The assignment will require the group to undertake research

The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage & Tobacco that you have chosen. Elder Ltd is the ap ...

A researcher is interested in determining whether there is

A researcher is interested in determining whether there is a relationship between the number of room air conditioning units sold each week and the time of year. What type of descriptive chart would be most useful in perf ...

Advanced financial advice instructions to candidates-1nbsp

Advanced Financial Advice: Instructions to candidates- 1.  You should familiarise yourself with this fact find prior to sitting the March 2016 examination. The March 2016 examination paper will be based upon this fact fi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate