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The Miramar Company is going to introduce one of three new products: a widget, a hummer, or a nimnot. The market conditins (favorable, stable, or unfavorable) will determine the prodit or loss the company realizes, as showing in the following payoff table.
Market Conditions
Favorable
Stable
Unfavorable
Product
.2
.7
.1
Widget
$120,000
$70,000
$-30,000
Hummer
60,000
40,000
20,000
Nimnot
35,000
30,000
Calculate the simple interest on a $9,212 investment made for five years at an interest rate of 6.5 percent per year.
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