You have a project that costs $800,000. It has a 1/3 chance of paying off $3,000,000 and a 2/3 chance of paying off $0. What is the expected payoff from the new project?
A) $500,000
B) $800,000
C) $1,000,000
D) $1,200,000
Answer: C
Explanation: C) Expected Payoff (Project) = (1/3) × $3,000,000 + (2/3) × $0 = $1,000,000.
You might also like to view...
A letter rejecting a job applicant should
A) avoid explaining why he or she was not selected. B) point out the applicant's shortcomings. C) be as personal as possible. D) be as long as possible. E) always offer an apology.
Which of the following is not an internal control procedure for payroll?
A) employees observed clocking in and out B) payroll depends on a fired employee's supervisor to notify them when an employee has been fired C) payroll requires employees to show identification when picking up their paychecks D) changes in pay rates on a computerized system must be tested by someone independent of payroll
The wish list program is an updated version of _____
a. cross selling b. cross-merchandising c. the bridal registry d. scrambled merchandising
Parties are free to include in a contract:
a. a forum selection clause. b. a choice of law clause. c. an arbitration clause. d. All of the above