A local builder offers to place with you insurance on every house he/she builds while is under construction. In return, he/she wants you to allow him/her 20% discount off the premium required by insurers. How would you respond to comply with RIBO Regulations? OA) You can only allow a five percent (5%) discount because of your overhead and expenses. OB) You will pay the builder a flat $10.00 fee for each house, but it is contrary to RIBO Regulations to discount the premium. O C) You refuse to pay the builder anything, since it would contravene RIBO Regulations. OD) You offer the builder a 20% premium refund for those houses that have no claims while under construction.

A local builder offers to place with you insurance on every house he/she builds while is under construction. In return, he/she wants you to allow him/her 20% discount off the premium required by insurers. How would you respond to comply with RIBO Regulations? OA) You can only allow a five percent (5%) discount because of your overhead and expenses. OB) You will pay the builder a flat $10.00 fee for each house, but it is contrary to RIBO Regulations to discount the premium. O C) You refuse to pay the builder anything, since it would contravene RIBO Regulations. OD) You offer the builder a 20% premium refund for those houses that have no claims while under construction.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consider a consumer with a medical bill of $5,000. He has a $4000 deductible and a 20 percent coinsurance rate on all expenses over $4000. His "out-of-pocket" liability for this bill is (assume he still has $4000 deductible to meet): $5000 $5200 $4000 $4200
8
Company B manufactures product Y - VC = 10,000 VND/unit - FC = 300,000,000 VND - IRR = 20% - - Investment: 1,000,000,000 VND = Qexp 50,000 units 1. Calculate the price to reach target profit 2. If cut or raise the price by 2000/ unit - calculate Q to reach the target profi
2. Airtight Manufacturing produces plastic cases that utility companies buy to protect electronic components on utility poles from weather damage. (a) The protective case currently used by utility companies has a 0.045 probability of cracking or breaking in any given year. When a protective case cracks or breaks, the utility company incurs a $800 expense to replace the case. What is the expected value of the utility company’s repair costs per protective case? Show your work. (b) Airtight has recently developed a stronger material for its protective case. The use of this stronger material reduces the case’s probability of cracking or breaking and serves as a differentiating factor for estimating this product’s VTC. Use the product-needs matrix described in the course to classify this differentiating factor. What type of product characteristic is it? What type of customer need does it satisfy? Justify your answers. (c) If this stronger material enables Airtight’s new protective…
5
2 If a car lasts approximately ten (10) years with only minor maintenance (oil, tires, brakes), why isn’t a two (2) year old car worth 80% of what original owner paid? (rather than 50-60%...)
4. You have developed an innovative new project that is estimated to produce an annual revenue stream (money in) of $15,000 per year for the next 10 years. Your current corporate cost of Money is 4%. However, in year 5, your CFO projects that rate will rise to 6% for the remaining five years of the project's lifespan. What is the NPV of this money in cashflow today? (we are ignoring any money out costs)
1
Pls help ASAP
8
Person A, Person B and Person C own stock in the same company. All of them are loss averse and have the same value function: v(x) = x/2 for gains and v(x) = 2x for losses. The stock's price is shown in the graph below Stock Price 100 90 80 95 80 90 70 70 60 60 50 50 40 30 20 10 0 October November December January Feburary March (a) (b) O Person A bought the stock in November and uses the purchase price as their reference point. If you ask them, how much would they say that they lost in terms of value when the price dropped from £95 to £70? Person B bought the stock in October and uses the peak price as their reference point. If you ask them, how much would they say that they lost in terms of value in January? In January, which month should Person B rather use as reference point in order to maximize their value? (d) [ Person C bought the stock in March. They expect to derive a value of at least +5 in April as compared to their reference point of the purchase price. What is the minimum…
A local insurance company offers both home and auto insurance to four types of customers with the reservation prices listed in the figure below. Assume for simplicity that there is only one consumer of each type. Home Auto Bundle Customer A $90 $67 $157 Customer B Customer C Customer D $117 $87 $204 $103 $77 $180 $83 $52 $135 If the firm were to sell home and auto insurance separately, it would charge $83 for home insurance, $52 for auto insurance, and earn a combined revenue of $540. Determine the revenue the firm would receive if it used a pure bundle. Comparing the revenue of the pure bundle to the revenue of selling home and auto insurance separately, we can conclude that the reservation prices of the consumers must: O A. have no correlation B. be positively correlated C. be negatively correlated D. be serially correlated