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..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the savings from using the lockbox are in dollor

Pacific Traders has annual sales of $1,724,684. The firm's financial manager has determined that using a lockbox will reduce collection time by 3.9 days. If the firm's opportunity cost on savings is 4.9 percent, the savings from using the lockbox are..

  Calculate the project and equity free cash flows

Calculate the Project and Equity Free Cash Flows for the following scenario

  What is the premium over the formula value for the warrants

If the market price of the warrants is $8 and the common stock price is $24 a share, what is the premium over the formula value for the warrants?

  Why is this such heated subject in many boardrooms how does

critically reflect on the importance of capital budgeting.nbsp why is this such a heated subject in many boardrooms?

  Which is the most difficult to get right

Of the various ways to determine the cost of capital, which is the most difficult to get right? Explain your rationale.

  What volume is needed to give pretax profit of 100000

assume that a radiologist group practice has the following cost structurefixed

  What is the value of firm

Dong has expected earnings before interest and taxes of $14,600, an unlevered cost of capital of 15 percent, and a tax rate of 35 percent. The company also has $3,500 of debt that carries a 6 percent coupon. The debt is selling at par value. What ..

  The following information is provided for each case

the following information is providedcasemarket price per share of acquiring companymarket price per share of acquired

  Multiple choice questionsnbspusing bond basics1nbsp which

multiple choice questionsnbspusing bond basics.1.nbsp which of the following bonds is sold by a corporation at a

  What is the advantage of homemade leverage to shareholders

what is the advantage of homemade leverage to shareholders and how does the use of this leverage affect a

  Compute the present value of a perpetuity that pays 12961

compute the present value of a perpetuity that pays 12961 annually given a required rate of return of 10 percent per

  Bf013 financial planning

Assessment Brief A2 – Term 2,How much money did the company receive before paying its portion of the direct costs? How much did the existing shareholders receive from the sale of their shares?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd