Pederson Home Heating Inc. anticipates that cash flows from home heating fuel sales next year will be $800,000 if the winter is mild, $1,000,000 if winter is average, and $1,500,000 if winter is exceptionally cold
The probability of an average winter is 60%, while the probability of either a mild or an exceptionally cold winter is 20%. What is Pederson's expected cash flow from fuel sales next winter?
A) $1,060,000
B) $1,100,000
C) $1,000,000
D) $1,150,000
Answer: A
You might also like to view...
From a(n) _______________ perspective, it would be argued that CEO compensation is based on the rights of the individuals and the judgments made with a specific decision process instead of a focus on the decision choices.
a. Deontological b. Ethical egoism c. Utilitarian d. Sidgwick’s dualism
If a group of employees is represented by a union and another union that has a better track record also wants to represent those workers, the employees:
A. Can choose to belong to both unions. B. Can immediately switch unions. C. Can file for a decertification election whenever enough workers say they want one. D. Must stick with the union they have until the contract expires.
Fifty percent of U.S. managers either resign or are fired within 18 months of a foreign takeover.
Answer the following statement true (T) or false (F)
Most firms must decide what fraction of an asset to
A) sell in bulk and what fraction of the asset to discard. B) save for the spot market and what fraction of the asset to discard. C) save for emergencies and what fraction of the asset to rework. D) sell in bulk and what fraction of the asset to save for the spot market.