1564145idn
Answered

Get comprehensive solutions to your questions with the help of IDNLearn.com's experts. Join our knowledgeable community to find the answers you need for any topic or issue.

Your business is looking into three contracting firms. Based on previous research, there is a 75% chance that company 1 will earn you $40,000. There is a 45% chance that company 2 will earn you $60,000. Company 3 has a 30%chance of earning you $80,000. It costs $20,000 to draw up legal paperwork for each company. How much profit or loss would you expect after this deal is done if you sign with all 3 companies?
$21,000 loss
$81,000 loss
$21,000 profit
$81,000 profit​

Sagot :

Johnsonsaharahidn

there would be a $21,000 profit.

this is because of the equation:[tex]40,000(.75) + 60,000(.45)+80,000(.30)+(-20,000)(1)= 21,000[/tex]

Francocanacariidn

I would expect a $21,000 profit if I sign with all 3 companies.

Given that my business is looking into three contracting firms, and based on previous research, there is a 75% chance that company 1 will earn me $ 40,000, there is a 45% chance that company 2 will earn me $ 60,000, while Company 3 has a 30% chance of earning me $ 80,000, and it costs $ 20,000 to draw up legal paperwork for each company, to determine how much profit or loss would I expect after this deal is done if I sign with all 3 companies, the following calculation must be performed:

  • ((40,000 x 0.75) - 20,000) + ((60,000 x 0.45) - 20,000) + ((80,000 x 0.30) - 20,000) = X
  • 30,000 - 20,000 + 27,000 - 20,000 + 24,000 - 20,000 = X
  • 81,000 - 60,000 = X
  • 21,000 = X

Therefore, I would expect a $21,000 profit if I sign with all 3 companies.

Learn more in https://brainly.com/question/22097128

View image Francocanacari
Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Your search for solutions ends at IDNLearn.com. Thank you for visiting, and we look forward to helping you again.