On july 1, 20x3, roxy co. obtained fire insurance for a three-year period at an annual premium of $72,000 payable on july 1 of each year. the first premium payment was made july 1, 20x3. on october 1, 20x3, roxy paid $24,000 for real estate taxes to cover the period ending september 30, 20x4. this prepayment was made to obtain a discount. in its december 31, 20x3, balance sheet, roxy should report prepaid expenses of:

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?