You can invest $100,000 into either project A or B. You estimate that A would succeed with a probability of 0.6 in which case it doubles in value. If it fails, its scrap value is $50,000 . Project B would succeed with probability 0.7, in which case it would have a value of $150,000 . If it fails, project B's scrap value is $30,000 . Which project should you invest in
a. Project A
b. Project B
c. Neither of the projects
d. You cannot tell from the information presented
a
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An economist's measurement of profit differs from an accountant's in that: a. accountants calculate total revenue differently than do economists
b. economists do not always include all of the opportunity costs when calculating total production costs. c. accountants do not always include all of the opportunity costs when calculating total production costs. d. economic profit generally exceeds accounting profit.
In Country X, the government requires employers to collect 9 percent of every employee's compensation as payroll tax. This is an example of
a. progressive tax. b. regressive tax. c. digressive tax. d. proportional tax.
Using the standard 45-degree line diagram, how does a decrease in net exports effect the expenditure schedule?
a. It increases the slope of the expenditure schedule. b. It decreases the slope of the expenditure schedule. c. It shifts the expenditure schedule upward. d. It shifts the expenditure schedule downward.
Suppose that a business discovers an opportunity that requires funds to exploit. What effect would this have in the market for loanable funds?
A. It will decrease interest rates and the quantity of funds lent will rise. B. It will decrease interest rates and the quantity of funds lent will fall. C. It will increase interest rates and the quantity of funds lent will rise. D. It will increase interest rates and the quantity of funds lent will fall.