An electric utility company builds a new power plant, and management wants to decide whether to build the plant at Site 1 or at Site 2. The cost of building the plant is $10 million at Site 1 and $20 million at Site 2. If the company builds at Site 1, and an earthquake occurs there during construction in the next three years, then the plant construction will have to be terminated (losing an estimated $10 million), due to the earthquake the company will lose another $10 million, and they will have to build the plant at Site 2. Based on experience, the company estimates that there is a 20% chance that an earthquake will occur at Site 1 during the next three years. For $1 million, the company can commission a detailed geological study of Site 1: the result of this study will be either favorable or unfavorable. In the past, similar geological studies have been unfavorable on 95% of the occasions in which an earthquake occurred in the following three years, and favorable on 90% of the occasions in which an earthquake did not occur in the following three years. 3.1 How should the company proceed to minimize its expected cost of constructing the plant

Answers

Answer 1

To minimize the expected cost of building the plant the best option for this company is to build at site 1

The best way to determine the best option for this company is to carefully analyze and compare the options presented:

Site 1:

Cost for building the plant $10 million

However, if an Earthquake occurs in the next 3 years:

Expected loss: $10 million (cost of the plant) + 10 million (cost paid due to earthquake) + $20 million (cost for building a new plant) = $40 million

Site 2:

Cost for building the plant $20 million

This means an Earquake in site 1 would make the cost of building in site 1 higher than the cost of building the plant at site 2 ($40 million vs $20 million)

Now, let's analyze the probabilities of an Earthquake

20% chance of earthquakes (company estimation)95% unfavorable for earthquakes (previous studies)90% favorable for earthquakes not occurring (previous studies)

These previous studies show the probability of an Earquake not occurring is about 92.5%, which is quite low. Based on this and the comparison of prices for building in site 1 and site 2, the best option is to build at site 1 because it is very likely there is not an earthquake and the cost is only $10 million. Moreover, the company can pay $1 million to double-check this probability, which leads to a total cost of $11 million.

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Related Questions

Ever since Damien interned at an accounting firm the summer after his freshman year of college, he’s wanted to become a CPA working at a large firm. Now, several years later after graduating from college, passing the CPA exam, and working at medium-sized firm, he’s been offered a job at a large national firm with the potential to become a partner in five years. Which of the five needs has Damien attained?

Answers

The need from Maslow's Hierarchy of Needs that has been accomplished is the esteem needs.

Maslow's Hierarchy of Needs simply refers to the theory of motivation that implies that there are certain needs that affect the behavior of a person.

Maslow's Hierarchy of Needs include:

Physiological needsSafety needsLove and belonging needsEsteem needsSelf-actualization needs

Based on the information given, Damien has attained the esteem needs. This includes self-worth, respect, recognition, and reputation. Since Damien is wanted to become a CPA working at a large firm, he's in the fourth stage which is esteem needs.

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classify technical education with example?​

Answers

Answer:

A kind of education which equips with skills that involve the use of practical approaches and other physical instruments in executing projects. Technical education is learning something about a specific work scientifically in detail and practical.

A few common examples include schools and education programs that focus on science and engineering, information and technology, architecture and design, business and fipnance, health and social services, education and child development, hospitality and tourism, or the fine and performing arts.

The DuPont equation Corporate decision makers and analysts often use a particular technique, called a DuPont analysis, to better understand the factors that drive a company’s financial performance, as reflected by its return on equity (ROE).

a. True
b. False

Answers

Answer:

true i think

Explanation:

Explain the significance of each of the following major fields of business activity: manufacturing, wholesaling, retailing.

Answers

Answer:

Manufacturing is the process of transforming raw resources into a form that customers can utilize. A picture frame maker creates completed items out of wood and glass. A baker is someone who transforms flour, sugar, and spices into pies and cakes. Manufacturing, more than any other industry, lends itself to large-scale operations. This is due to the fact that many of these businesses, such as automotive manufacturing, require significant quantities of money and a big number of employees to get started.

Explanation:

Wholesalers purchase items from extractive or manufacturing firms and resell them to other businesses. They often acquire in big numbers before selling in tiny ones.

Retailers purchase items from wholesalers, manufacturers, and extractive companies and sell them to customers. Most people associate retail with a store where they may purchase products.

2. If information is disseminated, what happens to it?

A) It is altered
B) It is distributed
C) It is destroyed
D) It is stored

Answers

Answer:

b

Explanation:

by definition, disseminate means to distribute or broadcast information

The following entries appear in a cash account in March. $ Payments by customers 15,000 Rents received 250 Insurance paid 150 Drawings 700 Capital paid in 2,000 The balance at 1st March was $2,000 (in hand) what was the closing balance at 31st March? ​

Answers

Answer:

ejvjnwkjvnjn

Explanation:

baxcjnsldkv

the closing balance is 24,768

Establishing a secure customer or client base is an example of how to deal with this type of risk.
compliance risk
operational risk
strategic risk
financial risk

Answers

It would be Operational risky

What is the collection of direct, non-advertising messages a company presents to the public about itself, its brand, and its products? A. Sales promotions B. Market research C. Direct marketing D. Public relations Please select the best answer from the choices provided A B C D

Answers

Answer:

Is a D. Public relations

Which two are segments in a Marketing Plan? (Choose two)

Demographic


Psychographic


Income


Loyalty

Answers

The two segments that are part of a Marketing Plan are: A. Demographic and B. Psychographic segments.

A marketing plan details a company's target market, the brand's value proposition, the marketing campaigns, and the evaluation metrics for assessing if marketing initiatives are effective and inefficient.

In the marketing plan, the target market is usually segmented to enable the marketing efforts to yield good results.

The four major segments are:

DemographicPsychographicGeographicBehavioral.

The "demographic" segment classifies the target market based on age, gender, or race.  On the hand, "psychographic" segmentation dwells on consumers' activities, interests, and opinions, which go beyond the demographic classification.

Thus, the two segments that are part of the Marketing Plan are demographic and psychographic, while income and loyalty are ingredients in the segments.

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Answer: Demographic

Psychographic

Explanation:

what are the various level of professions​

Answers

Answer:

Entry-level. Intermediate. Mid-level. Senior or executive-level.

Answer

Basic level.

Basic level.Medium level.

Basic level.Medium level.High level.

An entrepreneur is a person who__a business venture.
assumes the risk for
organizes
does not get involved in
operates

Answers

Answer:

assumes the risk for organizes

Explanation:

because in every business there is profit or loss if we don't take risk how we achieve our goal

Read the passage. Then answer the question that follows. Nikia designs and produces board games that she sells online. She formed a small company and hired two employees to help design, carve, and paint the individual pieces for each game. Because it takes so much labor to produce each game, the company completes and sells only a few games per month, and each one costs a lot of money. After some research, Nikia purchased a 3D printer that can produce game pieces much more quickly than a person can Which answer BEST represents how Nikia's investment in capital goods will affect the market for Nikia's board games?
O an increase in demand
O a decrease in demand
O an increase in supply
O a decrease in supply​

Answers

I would say the C. is the correct answer, because if the 3D Printer prints the pieces faster, the games are sold more frequently. I hope this helps, and that it makes sense to you.


What do you understand by "Industrialisation"?

Answers

Industrialisation is the period of social and economic change that transforms a human group to an industrial society from an agrarian society, involving the extensive manufacturing reorganisation of an economy. Industrialisation requires many key elements to grow on a significant scale. Your welcome

On January 1, 2021, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $17,500 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $105,000 and were expected to have a useful life of six years with no residual value. Both firms record amortization and depreciation semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Answers

If on January 1, 2021, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The appropriate journal entries recorded by Nath-Langstrom Services and ComputerWorld Leasing for the first year of the lease are:

First step is to determine the present value using this formula

Present value of lease payment=P[1-(1+r)^-n/r]

Where:

Payment(p)=$17,500

Rate of interest(r)=4%

Semi annual interest rate=4%/2=2%

Number of payment period(n)=4years

Let plug in the formula

Present value of lease payment=$17,500[1-(1+2%)^-4/2%]

Present value of lease payment=$17,500[1-(1.02)-^4/0.02%]

Present value of lease payment=$17,500×3.8077

Present value of lease payment=$66,634.75

Second step is to prepare the Amortization schedule

Date    Payment  Interest at 2%   Decrease in balance Outstanding balance

1/1/2021            -                        -                               -               $66,634.75

6/30/2021    $17,500       $1,332.695        $16,167.305         $50,467.445

12/31/2021    $17,500      $1,009.3489      $16,490.6511         $33,976.7939

6/30/2022   $17,500     $679.535878     $16,820.4641        $17,156

12/31/2022     $17,500      $343.12659             $17,156          $0

Interest at 2% on outstanding balance

6/30/2021 $66,634.75×2%=$1,332.695

12/31/2021 $50,467.445×2%=$1,009.3489

6/30/2022 $33,976.7939×2%=$679.535878

12/31/2022  $17,153×2%=$343.12659556

Decrease in balance

6/30/2021 $17,500-$1,332.695=$16,167.305

12/31/2021 $17,500-$1,009.3489=$16,490.6511

6/30/2022  $17,500-$679.535878=$16,820.464

12/31/2022  %17,500-$343.126595=$17,156

Outstanding balance

6/30/2021 $66,634.37-$16,167.305=$50,467.445

12/31/2021 $50,467.445-$16,490.6511=$33,976.7939

6/30/2022  $16,820.464122-$33,974.05=$17,156.329778

12/31/2022   $17,156-$17,156=$0

1) Preparation of the appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease

Jan 1, 2021

Dr Right of use asset $66,634.37

Cr Lease payable $66,634.37

June 30

Dr Interest expense   $1,009.3489      

Dr Lease payable $16,490.6511  

Cr Cash $17,500

Dr Amortization expense $16,490.6511  

Cr Right to use assets $16,490.6511  

Dec 31

Dr Interest expense  $1,332.695        

Dr Lease payable $16,167.305    

Cr Cash $17,500

Dr Amortization expense $16,167.305

Cr Right to use assets $16,167.305

2. Preparation of the appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease

June 30, 2021

Dr Cash $17,500

Cr Lease revenue $17,500

Dr Depreciation expense $8,750

Cr Accumulated depreciation  $8,750

[($105,000/6 years)/2]

Dec 31

Dr Cash $17,500

Cr Lease revenue $17,500

Dr Depreciation expense $8,750

Cr Accumulated depreciation  $8,750

[($105,000/6 years)/2]

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What do most companies do when they look to provide an offering to global markets?
Your
1) inform their competitors of their move to a global market
You do
2) send a memo to their internal employees
one op
3) adjust the offering to meet the needs of various other buyers around the globe
4) hold a press conference to answer media questions about selling the offering globally.

Answers

I’m confident it’s 4 because a press conference can help marketing teams gather information on how to best globally sell a product/service. I’d be the best move for a product in this situation.

Making an adjustment to the offerings to meet the needs of various other buyers around the globe is done by most of the companies when they look to provide an offering to global markets. Therefore, the option 3 holds true.

What is the significance of global markets?

Global markets can be referred to or considered as the relevant market for a business organization or a firm that deals in products or services such that their consumption is at a global level, and two or more countries or continents at large.

When companies require access to the global markets for expansion, they have to keep in mind the needs and demands of different kinds of buyers around the globe too, so that they have an opportunity to attract customers around the globe.

Therefore, the option 3 holds true and states regarding the significance of global markets.

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#SPJ2

The year is 2022 and today is July 1 (by assumption). You plan to fly from Newark to Amsterdam on August 2 and return on August 25. Today you can buy a one-way ticket for $350 or a round-trip ticket for $660. You could also wait until August 1 to buy your tickets. On August 1, a one-way ticket in either direction will cost $370, and a round-trip ticket will cost $730. Between July 1 and August 1, there is a 30% chance that your best friend will be able to provide you with a free one-way ticket as a present. If you buy a round-trip ticket on July 1 for $660 and your friend provides a free ticket, then you can return the second half of your round-trip ticket to the airline, after paying a $50 penalty. In this case, your net travel cost will become $380. Develop a decision tree to determine how to minimize your expected travel cost. Find the optimal policy.

Answers

The optimal policy will be to book a round-trip ticket.

Based on the information given, there is a 30% chance that my best friend will be able to provide you with a free one-way ticket as a present. This will be represented on the decision tree as 0.3.

Therefore, the probability that I will not get a free ticket will be 0.7 which is calculated as 0.3 subtracted from 1.

The cost of booking the return ticket on August 1st will be:

= 350 + 370

= 720

In conclusion, the minimum expected travel is $576. The optimal strategy will be to book the round ticket now. An attachment has been attached for further understanding.

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Overinflated tires are more prone to _____.
A. hydroplaning
B. deflating slowly
C. blowouts
D. catching on fire

Answers

Answer:

Blowouts

Explanation:

It is because it pops easier

blow outs its easy to explode

Price index rate definition

Answers

Answer:

the price of a weighted average market basket of consumer goods and services purchased by households

Explanation:

An unsecured loan is one which you:
Group of answer choices

A.Have a co-signer

B.Do not need collateral

C.Build up your credit score

D.Use your ATM card

Answers

Answer:

B.

Explanation:

You do not need collateral to be given an unsecured loan.

Explain why it is important for future managers to have global mindset ? Please help me, Thanks beforehand <3

Answers

Answer:

The main benefit of a global mindset is the organization's ability to combine speed with an accurate response. The organizational global mindset can bring about benefits that can manifest themselves in one or more competitive advantages.

Explanation:

Having an international mindset has not only proven to help boost productivity, profits, and project collaboration within the business, it also equips you with the tools and strategies to communicate effectively within the business and with international colleagues and understand how you can make a global impact .

According to new research published by the Harvard Business Review, a 'global mindset' is what candidates need to be successful in a global role in which they will need to be capable of adjusting to different environments and have the ability to work effectively with international colleagues.

Jim would like to learn more about what it's like to be a in college.without having to take college classes or difficult exams. Witch program might be the best fit for him?

A. International baccalaureate
B. advanced placement
C. dual credit
D. articulated credit

Answers

B Advanced Placement

According to the guidelines of good journalism, which of the following is correct:

O Her birthday is March 10
O Her birthday is Mar. 10
O Her birthday is march 10
O Her birthday is mar. 10

Answers

The first answer is correct

Answer:

Her birthday is March 10 plz Mark me as brainlliest

Discuss two shortcomings of using Gross Domestic Product as the primary measure of a country’s economic performance.

Answers

The exclusion of non-market transactions. The failure to account for or represent the degree of income inequality in society. The failure to indicate whether the nation's rate of growth is sustainable or not.

Michek Company loans Sarasota Company $2,000,000 at 6% for 3 years on January 1, 2020. Michek intends to hold this loan to maturity and has the financial ability to do so. The fair value of the loan at the end of each reporting period is as follows. December 31, 2020 $2,050,000 December 31, 2021 2,020,000 December 31, 2022 2,000,000 Prepare the journal entry(ies) at December 31, 2020, and December 31, 2022, for Michek related to these bonds, assuming (a) it does not use the fair value option, and (b) it uses the fair value option. Interest is paid on January 1.

Answers

Michek Company's Journal Entries related to loans to Sarasota Company are as follows:

a) Journal Entries without using fair value option:

December 31, 2020:

Debit Interest Receivable $120,000

Credit Interest Revenue $120,000

To record the 6% interest due on January 1.

December 31, 2022:

Debit Interest Receivable $120,000

Credit Interest Revenue $120,000

To record the 6% interest due on January 1.

b) Journal Entries with fair value option

December 31, 2020:

Debit Loan Receivable $50,000

Credit Unrealized Gain from Fair Value $50,000

To record the fair value of the loan.

Debit Interest Receivable $120,000

Credit Interest Revenue $120,000

To record the 6% interest due on January 1.

December 31, 2022:

Debit Unrealized Loss from Fair Value $20,000

Credit Loan Receivable $20,000

To record the fair value of the loan.

Debit Interest Receivable $120,000

Credit Interest Revenue $120,000

To record the 6% interest due on January 1.

Data and Calculations:

January 1, 2020, amount of loan = $2,000,000

Interest rate = 6%

Period of loan = 3 years

December 31,                   2020           2021           2022

Fair value of loan   $2,050,000   2,020,000   2,000,000

Interest income         $120,000     $120,000     $120,000 ($2,000,000 x 6%)

Payment of interest = January 1

December 31, 2021:

Debit Unrealized Loss from Fair Value $30,000

Credit Loan Receivable $30,000

Debit Interest Receivable $120,000

Credit Interest Revenue $120,000

Thus, the Loan Receivable account's balance at December 31 each year varies only when using the fair value option.

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You have an annual salary of $58,000 from which they deduct 3% for medical insurance and 18% for taxes. Your rent is $1200 a month. Your water, electricity and internet bill are around $238 a month. Every week you put 130 miles on your car that gives you 20 miles per gallon and gas cost $3.17 per gallon. You pay a premium of $1,019 every six months for car insurance. You spend $120 a week on food. You also have a student loan that you are paying $150 on every month and you spend $100 every 2 weeks just to treat yourself.

Requried:
Create a monthly budget and find your monthly cash flow.

Answers

Answer:

bhruy5y4t4yt4hdjzvcxvcfg

Explanation:

is Labor is a type of human resource.

Answers

yes! labor is a type of human resource.

Pizza is a product. As you have learned, services are marketed differently. Hypothesize about how the service at your restaurant may be marketed in order to set your business apart from others. How is marketing a service different than for a product?

Answers

Answer:

It's very different

Explanation:

when marketing a product we are trying to show our customers the products by manipulating them with idols, Models..etc that will make the customers think it's a perfect thing to buy because they saw someone famous do it.

for example when you see Tonny Stark wat some pizza on tv you will want to buy the same pizza he is eating.

But for the service part it's intangible so they only can see it, by just showing how beautiful, fansy, luxurious and relaxing it is. For example when you see a commercial on tv about Hawaii.

Summarize red lines and reverse red lining and why they are unethical lending practices

Answers

Answer:

3 For example, redlining has been used to describe discriminatory practices by retailers, both brick-and-mortar and online. Reverse redlining is the practice of targeting neighborhoods (mostly non-white) for higher prices or lending on unfair terms such as predatory lending of subprime mortgages. A 2017 study by Federal Reserve Bank of Chicago economists found that redlining—the practice whereby banks discriminated against the inhabitants of certain neighborhoods—had a persistent adverse impact on the neighborhoods, with redlining affecting homeownership rates, home values and credit scores in 2010.

Soda vs GDP Note: The linear model is the linear trend line (the broken line). (i) Both the USA and Mexico consume more soda than predicted by the linear model. But which of the two countries consumes much more than predicted? [ Select ] (ii) Both Japan and Switzerland consume less soda than predicted by the linear model. But which of the two countries consumes much less than predicted? [ Select ] (iii) Of the countries named on the scatterplot, which country’s soda consumption was closest to the amount predicted by the linear model? [ Select ] (iv) Of the countries named on the scatterplot, which country’s soda consumption was furthest from the amount predicted by the linear model?

Answers

The linear model is a term that determines a direct relationship between two elements that maintain a constant rate.

According to this and the graph shown in the figure below, we can answer the above questions as follows:

The US consumes more soda than Mexico.Japan consumes less soda than Switzerland.Egypt was the country that had the consumption of soda closest to the amount predicted by the linear model.The USA was the country that had the consumption of soda farther than what was predicted by the linear model.

We can arrive at these answers by looking at the chart. This is because the red dashed line, in the center of the graph, shows the forecast of the linear model about the consumption of soft drinks in the countries, taking into account their GDP.

In this case, by observing the position of the countries around this line, we can conclude the consumption of soda.

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You want a seat on the board of directors of Four Keys, Inc. The company has 290,000 shares of stock outstanding and the stock sells for $49 per share. There are currently 5 seats up for election. The company uses straight voting. How many shares do you need to guarantee that you will be elected to the board?
a. 96,668 shares
b. 48,334 shares
c. 58,000 shares
d. 130,501 shares
e. 145,001 shares

Answers

Answer:

C

Explanation:

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Cora has been having nausea, slight chest pain, and a bitter taste in her mouth. Which type of medicine is the doctor likely to prescribe? Tell whether each fraction, [tex]\frac{1}{n}[/tex], is written as a terminatingdecimal or a repeating decimal for the given valuesof n. Write T for terminating or R for repeating. How would you convince your investor audience about the merits of your investment idea? ( give some decisions) Use a calculator to approximate cos 43 and round to four decimal places. What is the magic triangle used for in science? 10 points __________ are the constitutional means referred to in Federalist Paper No. 51. a. Separation of powersb. The Supremacy Clause in Article VI of the Constitutionc. The Full Faith and Credit Clause in Article IV of the Constitutiond. Checks and balancese. The mathematical formula used to calculate the distribution of seats within the House of Representatives 1. Which description is most accurate for a Zero-Based Budget?a. You spend your checking account balance down to $0 every monthb. You put every dollar of your take-home pay into a budget category each monthC. You pay every one of your debts down to $0 every month Hi! I am giving the community a chance, will give brainliest if you answer this question for 20 points SOMEONE HELP ME WITH THE HW ILL MARK YOU BRAINLY 3/4 divided 2/5 Let me know as fast as possible In the diagram shown, C is the midpoint of BD. What is thelength of AC?Set up an equation based on the given information, solvefor x, and plug answer back in to answer the question An athlete drinks 448 ounces of water in 7 days. If the athlete drinks the same amount of water each day, how many ounces does the athlete drink in 1 day? The neurotransmitter acetylcholine: A. is chemically identical to heroin. B. is found in all sensory neurons. C. can cause hallucinations when present in abnormally excessive amounts. D. is involved in muscle contractions and memory. 1) Simplify the expression(3-4i)(1+5i)-(2-i)2) Simplify the expression^327x^6y^4PLEASE SHOW WORK! Which word names the way the different parts of language are arranged?GrammaPronunciation Structure Diction the three main types of scientific investigations are descriptive, comparative, and experimental. Which components are included in all three types of investigations? write in word form: (8x3) 6 The general bade his men to attack the enemy in the morning, hoping to gain an advantage.permittedaskedorderedrequested 1. A... is a person or animal that lives in a particular place.A.resource B. Individual C. dweller D. Commuter 12. Which type of industry is textiles?Oprimary industrysecondary industrytertiary industry