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Orlov [11]
2 years ago
13

The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years. The o

wner has been told that she "must" buy a surge suppressor to provide protection for her new hardware against possible surges or variations in the electrical current, which have the capacity to damage the computer. The amount of damage to the computer depends on the strength of the surge. It has been estimated that there is a 3% chance of incurring 350 dollar damage, 5% chance of incurring 250 dollar damage, and 12% chance of incurring 100 dollar damage from a surge within the next two years. An inexpensive suppressor, which would provide protection for only one surge, can be purchased. How much should the owner be willing to pay if she makes decisions on the basis of expected value
Business
1 answer:
Margarita [4]2 years ago
6 0

Answer:

$35

Explanation:

The computation of the expected value is shown below;

As we know that  

= Estimated chance of damage percentage × dollar damage + Estimated chance of damage percentage × dollar damage + Estimated chance of damage percentage × dollar damage

= 3% × $350 + 5% × $250 + 12% × $100

= $10.5 + $12.5 + $12

= $35

We simply multiplied the estimated chance of damage percentage with the dollar damage and then added the other two so that the expected value could arrive

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Lani's generated net income of $911, depreciation expense was $47, and dividends paid were $25. Accounts payables increased by $
guajiro [1.7K]

Answer:

What was the net cash flow from operating activity? $959

Explanation:

Net Income                 911  

Addition to cash    

Depreciation                   47  

 

958  

 

Operation activities  

Account Payable               15 Increase

Account receivables      -28 Increase

Inventory                         14 Decrease

 

Cash flow from

operating activities      959  

5 0
2 years ago
A consumer has ​$140 in monthly income to be spent on two goods Z and B. The price of good Z ​(Pz​) is ​$6.00. The Marginal Rate
romanna [79]

Answer:

3 and 46.67 units

Explanation:

The formula and the computations are shown below:

The price of good B is

= {The price of good Z (Pz)} ÷ {Marginal rate of transformation}

= {$6} ÷ {2}

= 3

Now the number of units to be purchased for all income used is

= (Monthly income spent on two goods) ÷ (price of good B)

= ($140) ÷ (3)

= 46.67 units

By applying the above formula we can find out the price of good B and the number of units purchased

5 0
2 years ago
When SW International declared a dividend of $20,000,000, its market value increased from $8 billion to $8.5 billion. However, i
Studentka2010 [4]

When SW International declared a dividend of $20,000,000, its market value increased from $8 billion to $8.5 billion. However, it lost a chance to reinvest $20,000,000 in the research and development of a new product which would have earned a profit of $200 million. Thus, this $200 million is referred to as SW International's-T<u>his is the Opportunity cost of the S.W international</u>

<u />

Explanation:

The term opportunity cost refer to the profit  that is given up to achieve another thing.

Lets consider the example in this we can analyse the fact that SW international made an alternative choice of declaring the dividend rather than utilizing the money in R&D for a new project .Thus the amount $20,000,000 is forgone in order to achieve the $ 85 million market value.

<u>Thus the $200 million is referred to as the Opportunity Cost.</u>

6 0
2 years ago
Pam's Pet Palace is considering an investment in dog grooming equipment that would increase cash receipts by $12,000 annually. T
4vir4ik [10]

Answer:

The answer is: D) $32,835

Explanation:

The easiest way to calculate the present value of an investment is to use an excel spreadsheet and the present value function =NPV(discount rate, series of cash flow). The first nine cash flows equal 12,000 and the tenth cash flow equals 17,000.

After you calculate the present value in excel, you must subtract the investment amount to determine the net present value.

NPV = $82,837 - $50,000 = $32,837 (the answer varies by $2 probably because of rounding percentages)

3 0
2 years ago
You have a client whose business uses accrual-basis invoicing and accounts receivable workflow. They use the Banking screen to e
PIT_PIT [208]

Answer: Their Accounts Receivable balance will not be accurate.

The income account will show duplicate income.

Explanation:

Based on the information given in the question, the problem that this will cause is that there'll be an incorrect balance that is shown in the balance of the accounts receivable.

Also, there'll be a duplicate income entry that is created in the income account.

3 0
2 years ago
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