You are considering a project in Bolivia that would generate 3 million dollars in cash flows per year going forever. The cost of the project is 10 million dollars. The discount rate for the project is 15%. You believe that there is some probability of expropriation prior to the 3rd year (after the 2nd cash flow). Which of the following statements is most correct?
a. This is a good project if the probability of expropriation is larger than.33.
b. This is a good project if the probability of expropriation is smaller than.33.
c. This is a good project if the probability of expropriation is smaller than .
d. This is a good project if the probability of expropriation is smaller than .66.

Answers

Answer 1

Answer:

b. This is a good project if the probability of expropriation is smaller than .33.

Step-by-step explanation:

a) Data and Calculations:

Cash inflows per year going forever = $3 million

Cost of project = $10 million

Discount rate for the project = 15%

The present of a perpetuity = Cash inflow/Discount rate

= $3/0.15 million

= $20 million

NPV = $10 million ($20 - $10 million)

b) The probability of expropriation indicates that the government of Bolivia may likely take over the project after the initial investment had been made.  This will cause the investor to lose her investments.  If the probability of the expropriation taking place is equal to 0.33, the investor may recover the cost of investment without making any profit in three years' time.  But if the probability of expropriation happening is less than 0.33, the investor could recover enough to cover the investment cost.


Related Questions

Carey is mixing a pitcher of lemonade. The table below shows how many tablespoons of lemon juice should be added to different amounts of water to make lemonade.
How many tablespoons of lemon juice should Carey add to 18 cups of water?

Answers

Answer would be 12 so C

Explanation look at the 8 cups of water is 6 times it by 2 it’s 12

A bridge connecting two cities separated by a lake has a length of 5927.261 yd. use the table of facts to find the length of the bridge in miles. Round your answer to the nearest tenth.

Answers

Answer:

the length of the bridge in miles is 3.37 miles

Step-by-step explanation:

The computation of the length of the bridge in miles is shown below:

Given that

The length is 5927.261 yard

As we know that

1760 yard = 1 mile

So 1 yard = 1 ÷ 1760 mile

For 5927.261 yard, the miles would be

= 5927.261 ÷ 1760

= 3.37 miles

Hence, the length of the bridge in miles is 3.37 miles

Determine the area of the composite figure.​

Answers

Answer:

113 [tex]m^{2}[/tex]

Step-by-step explanation:

top rectangle = l x w = 6 x 13 = 78

lower rectangle width = 13-8=5. so a = l x w. 7 5 = 35

78+35= 113

Answer:

113 will be the correct answers

Nicole received the following scores on her last 10 math assignments.

Answers

Answer: 89

Step-by-step explanation:

right on edge

2. P337. 23. A large box contains 10,000 ball bearings. A random sample of 120 is chosen. The sample mean diameter is 10 mm, and the standard deviation is 0.24 mm. True or false: (a) A 95% con dence interval for the mean diameter of the 120 bearings in the sample is 1 ???? (1:96)(0:24)= p 120. (b) A 95% con dence interval for the mean diameter of the 10,000 bearings in the sample is 1 ???? (1:96)(0:24)= p 120. (c) A 95% con dence interval for the mean diameter of the 10,000 bearings in the sample is 1 ???? (1:96)(0:24)= p 10; 000.

Answers

Answer:

B is True

A, C. D are false

Step-by-step explanation:

Given :

Sample size, n = 120

Mean diameter, m = 10

Standard deviation, s = 0.24

Confidence level, Zcritical ; Z0.05/2 = Z0.025 = 1.96

The confidence interval represents how the true mean value compares to a set of values around the mean computed from a set of sample drawn from the population.

The population here is N = 10000

To obtain

Confidence interval (C. I) :

Mean ± margin of error

Margin of Error = Zcritical * s/sqrt(n)

Margin of Error = 1.96 * 0.24/sqrt(120)

Confidence interval for the 10,000 ball bearing :

10 ± 1.96 * (0.24) / sqrt(120)

Hence. The confidence interval defined as :

10 ± 1.96 * (0.24) / sqrt(120) is the 95% confidence interval for the mean diameter of the 10,000 bearings in the box.

CAn someone please help me with this? I been getting bots all day

Answers

the answer is C i’m pretty sure because you can divide y by 15 and get x

Help thank you!............​

Answers

Answer:

16

Step-by-step explanation:

6+6 = 12

2+2 = 4

12+4 = 16

Pls help, I don't know how to solve this. No files, No links pls, thanks!

Find:

a) 0.5 of 12

b) 0.15 of $2

Answers

The answer should be this below
a- 4.16%
b- 7.5%

The graph above is a transformation of the function f(x)=|x|

Write an equation for the function graphed above.

Answers

Answer:

I think that the equation would be = |X - 2|

Step-by-step explanation:

Hope it was helpful :)

The equation for the function graphed above is [tex]g(x) = |x-2| + 1[/tex].

The expression of [tex]g(x)[/tex] is the consequence of translating both horizontally and vertically regarding [tex]f(x)[/tex], which it can be defined by following expression:

[tex]g(x) = f(x - h) + k[/tex] (1)

[tex]f(x)[/tex] - Original function.[tex]g(x)[/tex] - Resulting function.[tex](h,k)[/tex] - Coordinates of the "center" of the resulting function.

If we know that [tex](h,k) = (2, 1)[/tex] and [tex]f(x) = |x|[/tex], then the resulting function is:

[tex]g(x) = |x-2| + 1[/tex]

The equation for the function graphed above is [tex]g(x) = |x-2| + 1[/tex].

Help Asap
Find the value of x. Round to the
nearest tenth.
35
16
X
X
= [?]

Answers

Answer:

please try sending a photo so it would make more sense

Why is it that every time I ask a question either it never gets answered or just gets met with spam or someone sending me gross images?

Answers

Answer:

That is what happens to me, I am asking a question right now and like people say like "Sorry don't want to be mean but no one wants to do it" so I am really not sure.

Step-by-step explanation:

Find the surface area of a cylinder with a base diameter of 10 in and a height of 8 in.

Answers

Answej hhjb hgygvhgvhgvhgvhvhgvhvhvgh

What is the area of this shape

Answers

Answer:

252

Step-by-step explanation:

60+61+11

Select all equivalent options

A. 6

B. 3^2

C. 9

D. 33

Answers

The answer will be B

The principal is interested in knowing whether the staff members in the entire school would prefer having meetings before school or after. The principal conducts a random sample from the following groups:

All staff members
All students
All the front office staff
All the male teachers
Which of the following would provide the best results for the survey? (3 points)

a
All the male teachers

b
All staff members

c
All students

d
All the front office staff

Answers

Answer:

B all staff members, but if your going for misogynistic path than A

PLEASE HELP IM STUCK
with explanation pleaase ​

Answers

Answer:

안녕하세요

Step-by-step explanation:

안녕하세요 어떻게 우리는 오늘 oM입니다g

5th grade math. correct answer will be marked brainliest

Answers

Answer: C and for the bottom is 3*3/8=9/8=1 1/8

Step-by-step explanation: hoped this helped :)

Three sixth-grade classes raised $25.50, $49.75,
and $37.25 for their classroom libraries. They agreed to
share the money raised equally. What is each class’s equal share?

Answers

Answer:

$37.50

Step-by-step explanation:

They are asking you to find the average and to do that you have to add all the numbers together in a given set then divide that total by the amount of numbers in that set to get your average.

Answer:

The answer is, 37.50

Step-by-step explanation:

Definition of spread out and share:

In statistics, spread refers to a data set's variability, or how the data is spread out and differs from the mean.

The range, quartiles, deciles, and percentiles; the five-number summary; standard deviation, and variance are all examples of spread measures.

According, to the question:

Adding the all the value, 25.50, 49.75,and 37.25

= 25.50+49.75+37.25

= 112.5

To get your average, divide the sum by the number of numbers in the set.

= 112.5/3

= 37.50

The equal share of the class is 37.50.

To know more about spread out and share here, https://brainly.com/question/26955893

#SPJ2

how many square feet are in 88"x107"​

Answers

Answer: 792 i belive

Step-by-step explanation:

Answer: 88 inches x 107 inches = 65.39 ft²

Is the point (33,26) on the line of the equation y=1/3x+15? How do you know that it is or is not on the line?

Fast please this is a test

Answers

Yes it is because when you plug in (33, 26) you get 26=26. So yes

the unit rate 18 meters in 15 minutes

Answers

Answer:

1.2 meters per minute

Step-by-step explanation:

18÷15/15÷15

1.2 meters/1 minute

1.2 meters/minute

Determine whether the System of equations 3x+y=-5; 3y+15=-9x

Answers

Answer:

Infinitely many solutions.

Step-by-step explanation:

The given system of equations are :

3x+y=-5 ...(1)

3y+15=-9x

y+5 = -3x

or

3x+y = -5 ....(2)

Here, [tex]\dfrac{a_1}{a_2}=\dfrac{b_1}{b_2}=\dfrac{c_1}{c_2}[/tex]

It means, two lines are coincident. It means they have infinitely many solutions.

Which drawing appears to be congruent to the given triangle? 1) A) B) C) D) Hover over answer image to enlarge​

Answers

I think the answer will be (B)
I hope it helps goodluck

A bike has a diameter of 10 in. What is the circumference of the wheel?

Answers

The circumference would equal to 31.4 rounded to the tenth place or 31.42. 10 times pie= 31.4 or 31.42

A bakery sells mocha cupcakes and vanilla cupcakes. It sold 200 cupcakes in a day, and 44% of them were vanilla. How many of the cupcakes sold that day were mocha?

Answers

200 - 44% = 122

200 - 122 = 78

The amount of how many cupcakes that were sold that day that were mocha was 78.

Answer:46

Step-by-step explanation:

part/whole=percent/100 x=part

x/200=23/100

100•x=200•23

100x/100=4600/100

x=46

what is the value of x? Hiking trails oak trail 125 degrees. pine trail x degrees. ash trail.​

Answers

The value of x is 55.

Drag the dollar amounts and drop them next to the
corresponding budget categories.
(You can use the calculator below for help.)
Asking again because this is the last thing I need to do for school please don’t send sketchy links the answer

Answers

Answer:

utilities 237

transportation 260

debt 331

phone 142

medical 95

misc  166

the other questions were correct you have the formula just trust yourself

Step-by-step explanation:

Monthly saving is $213.

Monthly utilities is $237.

Monthly transportation is $260.

Monthly debt repayment is $331.

Monthly phone, cable, internet expneses is $142.

Monthly medical expenses is $95.

Monthly miscellaneous is $166.

What are the budget cateogries?

Percentage can be described as the fraction of a number that is expressed as a number out of hundred.

Leslie's monthly saving : 9% x $2366.10 = $213

Leslie's monthly utilities : 10% x $2366.10 = $ 237

Leslie's monthly transportation : 11% x $2366.10 = $260

Leslie's monthly debt repayment : 14% x $2366.10 = $331

Leslie's monthly phone, cable, internet expneses :6 % x $2366.10 = $142

Leslie's monthly medical expenses 4% x $2366.10 = $95

Leslie's monthly miscellaneous : 7% x $2366.10 = $166

To learn more about percentages, please check: https://brainly.com/question/25764815

Howard polled a large sample of individuals to find the percentage of students who are males and the percentage of
students who are females. Which of the following should be used to display the given categories of data?
Select the correct answer below:
- stem-and-leaf plot
- bar graph
-line graph
-dot plot

Answers

The answer is a bar graph.

Answer:

Either a pie chart or a bar graph

Step-by-step explanation:

THIS THE CORRECT ANSWER

Can someone please help me with this

Answers

Please I don’t have an answer to this okay but trust me do this, this way

Know what shape of the given shape ( triangle or square)
Area is adding all side
Always in (M^2 or Ft^2)

Eric buys a coffee table price d at $100. If the sales taxis 5%, what wil lbe the total cost including tax?

Answers

To solve this problem you take the price and multiply it by the tax percentage.

$100 x 5% = 5

Then add $5 (total of tax) to the price.

The TOTAL with tax would be $105

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