Business, 10.12.2019 00:31, firefox1fan
Hemmingway, inc., is considering a $5 million research and development project. profit projections appear promising, but hemmingway's president is concerned because the probability that the r& d project will be succesful is only .50. furthermore, the president knows that even if the project is successful, it will require that the compnay build a new production facility at a cost of $20 million in order to manufacture the product. if the facility is built, uncertainty remains about the demand and thus uncertainty about the profit that will be realized. another option is that if the r& d project is successful, the company could sell the rights to the product for an estimated $25 million. under this option, the company would not build the $20 million production facility. a. create a decision tree. should the company undertake the r& d project? b. if it does and the r& d project is successful, what should the company do? what is the expected value of following your suggested strategy? c. suppose that the selling rights were higher. how high would they have to be in order to make the company consider selling the rights (again, assume the project has been undertaken and it is successful)?
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Business, 21.06.2019 17:00, mqturner1989Kedie
What are ways individuals may reduce their total education and training costs?
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Business, 22.06.2019 11:20, johnlecona210
Security a has a higher standard deviation of returns than security b. we would expect that: (i) security a would have a risk premium equal to security b. (ii) the likely range of returns for security a in any given year would be higher than the likely range of returns for security b. (iii) the sharpe ratio of a will be higher than the sharpe ratio of b. (a) i only (b) i and ii only (c) ii and iii only (d) i, ii and iii
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Business, 22.06.2019 12:30, dtrdtrdtrdtrdrt1325
Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented
Answers: 1
Hemmingway, inc., is considering a $5 million research and development project. profit projections a...
Mathematics, 04.08.2020 17:01
Mathematics, 04.08.2020 17:01