Login

Contact Us
Business and Finance Homework
Need Finance Homework Help? Ask an Expert
Not a Business and Finance Homework Question?
How JustAnswer Works:
Ask an Expert
Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
Get a Professional Answer
Via email, text message, or notification as you wait on our site.
Ask follow up questions if you need to.
100% Satisfaction Guarantee
Rate the answer you receive.
Ask linda_us Your Own Question
linda_us
,
Master's Degree
Category:
Business and Finance Homework
Satisfied Customers:
852
Experience:
A tutor for Business, Finance, Accounts and other related topics.
19873544
Type Your Business and Finance Homework Question Here...
linda_us is online now
Economics of Risk and Uncertainty Applied ProblemsPlease
Customer Question
Economics of Risk and Uncertainty Applied Problems
Please complete the following two applied problems. Show all your calculations and explain your results.Problem 1:A generous university benefactor has agreed to donate a large amount of money for student scholarships. The money can be provided in one lump sum of $12 million in Year 0 (the current year), or in parts, in which $7 million can be provided at the end of Year 1, and another $7 million can be provided at the end of Year 2.Describe your answer for each item below in complete sentences, whenever it is necessary. Show all of your calculations and processes for the following points:Assuming the opportunity interest rate is 8%, what is the present value of the second alternative mentioned above? Which of the two alternatives should be chosen and why?
How would your decision change if the opportunity interest rate is 12%?
Provide a description of a scenario where this kind of decision between two types of payment streams applies in the “realworld” business setting.
Problem 2:The San Diego LLC is considering a threeyear project, Project A, involving an initial investment of $80 million and the following cash inflows and probabilities:See attachment for ChartDescribe your answer for each question in complete sentences, whenever it is necessary. Show all of your calculations and processes for the following points:Describe and calculate Project A’s expected net present value (ENPV) and standard deviation (SD), assuming the discount rate (or riskfree interest rate) to be 8%. What is the decision rule in terms of ENPV? What will be San Diego LLC’s decision regarding this project? Describe your answer.
The company is also considering another threeyear project, Project B, which has an ENPV of $32 million and standard deviation of $10.5 million. Project A and B are mutually exclusive. Which of the two projects would you prefer if you do not consider the risk factor? Explain.
Describe the coefficient of variation (CV) and the standard deviation (SD) in connection with risk attitudes and decision making. If you now also consider your riskaversion attitude, as the CEO of the San Diego LLC will you make a different decision between Project A and Project B? Why or why not?
Submitted:
7 months ago.
Category:
Business and Finance Homework
Share this conversation
Customer:
replied 7 months ago.
Added Attachment
Expert:
F. Naz
replied 7 months ago.
Please accept the offer so the answer may be provided in next 24 hours or earlier, thanks.
Ask Your Own Business and Finance Homework Question
Share this conversation
Related Business and Finance Homework Questions
Question
Date Submitted
TO COMPLETE A PROJECT AND I STUCK, R. Lane (SSN 123446666)
11/26/2016
11/26/2016
PDtax
Conduct Quantitative Analysis: Set up Spreadsheet, Add Data,
11/25/2016
11/30/2016
Pateel Papazian
Library Research Assignment There are 4 primary financial
11/15/2016
11/16/2016
Pateel Papazian
1. A market value weighted index has three stocks in it,
11/9/2016
11/13/2016
PDtax
Answers for Penn Exam 061579
11/5/2016
11/6/2016
PDtax
TASK 2 Scenario: Company A produces and sells a popular pet
10/25/2016
10/25/2016
Ryan
Note: Complete 12 trials using the random numbers that are
10/24/2016
10/24/2016
Ryan
Develop a response to the decision tree chart from the
10/24/2016
10/31/2016
Johnmark1900
I have another assignment that I did the work but I would be
10/2/2016
10/2/2016
PDtax
Question 1 You are a service disabled veteran Asian female
9/30/2016
9/30/2016
PDtax
X
Ask a Business Tutor
Get a Professional Answer. 100% Satisfaction Guaranteed.
56 Business Tutors are Online Now
Type Your Business and Finance Homework Question Here...
characters left: