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Jose is thinking about purchasing a soft drink machine and placing it in a business office. He knows that there is a 7 percent probability that someone who walks by the machine will make a purchase from the machine, and he knows that the profit on each soft drink sold is $0.10. If Jose expects 969 people per day to pass by the machine and requires a complete return of his investment in one year, then what is the maximum price that he should be willing to pay for the soft drink machine? Assume 250 working days in a year and ignore tax and the time value of money.
(Carry out interim calculations to two decimal places, round final answer to nearest dollar)
What is Jose's expected profit from the soft drink machine?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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