1. Chemitronix Ltd. is a microchips manufacturing company . It was found that the business is at the maturity stage , demanding some change . After rigorous research , management came up with the following decision variables   Expansion : 45 % chance of gaining 1,500,000 ; 55 % chance of losing X New Product : 50 % chance of gaining 900,000 ; 50 % chance of losing 600374 What must have been the value of expansion loss if expansion and new product will result to the same expected monetary values ? Add your answer________________   2. An engineering project has an investment amount of $ 129548 with an annual net profit of $ 53077 for 4 years. If the interest rate and average inflation rate are 15 % and 6 % , respectively , calculate the present worth of the entire period . Add your answer________________

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1. Chemitronix Ltd. is a microchips manufacturing company . It was found that the business is at the maturity stage , demanding some change . After rigorous research , management came up with the following decision variables

 

Expansion : 45 % chance of gaining 1,500,000 ; 55 % chance of losing X

New Product : 50 % chance of gaining 900,000 ; 50 % chance of losing 600374

What must have been the value of expansion loss if expansion and new product will result to the same expected monetary values ?

Add your answer________________

 

2. An engineering project has an investment amount of $ 129548 with an annual net profit of $ 53077 for 4 years.

If the interest rate and average inflation rate are 15 % and 6 % , respectively , calculate the present worth of the entire period .

Add your answer________________

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