Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional values for the various alternative (stocking decision) and states of nature (size of crowd): States of Nature (demand) Big Average $22,000 $12,000 $14,000 $11,000 $9,600 $8,000 The probabilities associated with the states of nature are 0.30 for a big demand, 0.50 for an average demand, and 0.20 for a small demand a) The alternative that provides Andrew Thomas the greatest expected monetary value (EMV) is Alternatives Large Stock Average Stock Small Stock Small -$2,000 $5,500 $4,000 The EMV of this decision is $(enter your answer as a whole number). b) The expected value of perfect information (EVPI) for Andrew Thomas = $(enter your answer as a whole number).

Andrew Thomas, a sandwich vendor at Hard Rock Cafe's annual Rockfest, created a table of conditional values for the various alternative (stocking decision) and states of nature (size of crowd): States of Nature (demand) Big Average $22,000 $12,000 $14,000 $11,000 $9,600 $8,000 The probabilities associated with the states of nature are 0.30 for a big demand, 0.50 for an average demand, and 0.20 for a small demand a) The alternative that provides Andrew Thomas the greatest expected monetary value (EMV) is Alternatives Large Stock Average Stock Small Stock Small -$2,000 $5,500 $4,000 The EMV of this decision is $(enter your answer as a whole number). b) The expected value of perfect information (EVPI) for Andrew Thomas = $(enter your answer as a whole number).

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Consider a policy that has benefits and costs that accrue in the following way: Year 0: Benefits = 0; Costs = 100. Year 1: Benefits = 20; Costs = 25. Year 2: Benefits = 40; Costs = 20. Year 3: Benefits = 60; Costs = 20. Year 4: Benefits = 80; Costs = 20. If the social discount rate is 8%, the net present value of the policy is Please report your answer out to at least two digits (e.g., 4.44 or -0.26). Answer:
Your Question : Please introduction and correct and incorrect option explain!
V1. Hello After reading "Awesome Bits Games: Managing a Controversial Pricing Scheme Case" Please answer the below questions. Thank you. 5. Consider the options available to ABG at the time of the emergency meeting (do nothing; do nothing but explain; open the USD 310 pledge level to an unlimited number; roll the price back to USD 250). Perform appropriate financial analysis for each option. Examine the role of the company, competition, and customers in this decision. Which option should ABG choose? Explain the answer
For the following two alternatives, if the MARR is 10% per year (a)which one has a shorter payback period (b) which one do you select if you use the PW analysis. (c) is your selection different in (a) and (b)? Why? (d) use Spreadsheet to solve a and b. Alternative A: initial cost = $300,000 Revenue = $60,000 Alternative B: initial costs = $300,000 Revenue starts from n=1 at $10,000 and increases by $15,000 per year The expected life is 10 years for each alternative.
Suppose you have a 120MW power plant with a marginal cost of $20/MWh. You expect that electricity demand will be 100MW over the next hour. The maximum you are allowed to bid is $500/MWh. You find out that all of your competitors (500MW capacity) are planning on bidding in at $40/MWh. Which of the following bids would make you the most money? Select one: a. $20/MWh O b. $500/MWh O c. $30/MWh
Karamo's Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow of $160 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. Probability 0.2 0.2 0.3 0.3 Site A Site B Site A Cash Site A O Site B FlowS $ 70 160 170 210 Probability 0.1 0.2 0.2 0.4 0.1 a. Compute the coefficient of variation for each site. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Site B Coefficient of Variation Cash FlowS $ 50 80 160 210 230 b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk.
You own a restaurant and are considering additional waiters. Alfred’s pay scheme would be $120 per evening. Blanchard’s pay scheme would be $10 per table served. A. Which would be considered a variable coat and which a fixed cost? B. Charles, a third potential waiter, asks for $60 per evening plus $5/table. From the perspectives of Alfred, Blanchard an Charles, who is taking the most risk and who the least? Who has the most to gain and who the least? C. As you are about to choose, Dutch enters and offers the following: He will accept $7.50/table but wants a guaranteeof minimum $30 per evening. Comparing Charles’ and Dutch’s offers, where do they “break even” for you (i.e., at how many tables will you be paying them the same amount)?
Suppose that the demand for a magazine is 2200 copies each week if the magazine is given away for free and drops to 1975 each week if the price is $5 per copy. Find the demand function qD and use it to answer the following questions. You may want to look at pages 71 through 73 in the notes (videos 52 and 53).a. Fill in the blanks below to interpret the slope of the demand function. For every $ Blank 1. Calculate the answer by read surrounding text. increase in price, Blank 2. Calculate the answer by read surrounding text. fewer copies will be sold.b. Determine how many copies of the magazine would be sold each week if the price was set at $11 per copy. Blank 3. Calculate the answer by read surrounding text. copies
The College is planning a concert. Maximum capacity for the concert venue is 3,000. tickets will be sold for $25 per ticket. The college estimates that costs of producing the concert to be 2,500 plus the cost of the band. Alternative A a fee of $8,000 and $5 per tickets; or Alternative B - $8.00 per ticket sold Question 1. If you expect to see 3,000 tickets, which alternative produces the highest profit?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
A firm is considering renting a trailer at $300/mo. The unit is needed for 5 yr. The leasing company offers a lump sum payment of $24,000 at the end of 5 yr as an alternative payment plan, but is willing to discount this figure. The firm places a value of 10% (effective annual rate) on invested capital. How large should the discount be in order to be acceptable as an equivalent?

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