1. If the value of sustainable investing is $101.6 and the discount rate is 9.4% while the value of non-sustainable investing is $39.2 and the company has a 29.1% probability of being sustainable. What is the expected value today of the company given a 19 year horizon? (Answer to 2 decimal places in $). 2. If the value of sustainable investing is $78.8 and the discount rate is 8.1% while the value of non-sustainable investing is $39.02 and the expected value of the company is $37.63. What is the assumed probability of being sustainable given a 9 year horizon? (Answer in percent to 2 decimals)      ( explain all question with proper answer.)

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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1. If the value of sustainable investing is $101.6 and the discount rate is 9.4% while the value of non-sustainable investing is $39.2 and the company has a 29.1% probability of being sustainable. What is the expected value today of the company given a 19 year horizon? (Answer to 2 decimal places in $).

2. If the value of sustainable investing is $78.8 and the discount rate is 8.1% while the value of non-sustainable investing is $39.02 and the expected value of the company is $37.63. What is the assumed probability of being sustainable given a 9 year horizon? (Answer in percent to 2 decimals)

 

 

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