Solution-Define range of rate of return and expected return

Define range of rate of return and expected return

Assignment Help Finance Basics

Reference no: EM131441982

Question: Atomic Blaster Bean Company is considering the purchase of one of bodacious bean burners "Hickory Honey" or "Bean-tastic burner." Both should provide a benefit over a 10 year period and each requires an investment of $450,000. Looking at the following table which includes estimates of rates of return, probabilities for pessimistic, most likely and optimistic results. Hickory Honey Bean-tastic Burner Investment Amount Probability Amount Probability $450,000 1.00 $450,000 1.00 Rate of Return Pessimistic 10% .10 7% .30 Likely 14% .70 14% .40 Optimistic 19% .20 21% .30

1) Range of rate of return

2) Expected Return?

3) Standard Deviation?

4) Best option?

Reference no: EM131441982

Questions Cloud

Making the amaon kindle : The questions must be answer using an essay format. Submit the paper following the guidelines of the APA including academic references as appropriate.

Business legal obligations for disaster preparedness : Research and determine your business's legal obligations for disaster preparedness. You may need to investigate federal, state, and local community guidelines.

What can be achieved through teamwork : But once I realized what he cared about most it was easy to successfully play on those emotions which ultimately taught us all a lesson about what can be achieved through teamwork.

Financial statements or perform basic : Consider all that you have learned in this course. How can you apply what you have learned? Look at the financial statements or perform basic research on your current or previous employer. What can you deduce about their financial standing that yo..

Define range of rate of return and expected return : Atomic Blaster Bean Company is considering the purchase of one of bodacious bean burners "Hickory Honey" or "Bean-tastic burner".

How agile project management relates to project management : ‘'How agile project management improves project management of information technology projects.''is viable for a research paper. What would you do after you have described agile methodology and how it improves management of information technology?

Post given information to the discussion board : Review their website and see if you can tell whether or not they accept donations. If you can't tell, check Guidestar and see if they are listed. Include the website in your post. Post information to the Discussion Board.

Locate a company involved in international logistics : Locate a company involved in International Logistics and discuss how it addresses its Global involvement.

Describe at least two common security threats against wired : Management is pleased with the progress that has been made and likes the steps you have taken to set up a secured network environment. During the last status meeting, it was asked, has everything been done that is possible to ensure the security o..

User Account

All Pages

Define range of rate of return and expected return

Reference no: EM131441982

Reference no: EM131441982

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT