What is probability of stable currency value-good economy

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Reference no: EM132032956

You are considering investing in a project in Australia. There are several risks that you think have the potential to significantly affect project performance. The risks you are concerned about are as follows:

* AUD currency value. You think the probability of depreciation is 0.02, the probability of stable value is 0.55, and the rest is the probability of appreciation.

* General economic conditions. Probability of weak economy is 0.06, average economy 0.16, and the rest is good economy.

* Local tax rates. Probability of increased tax rate is 0.56, and the rest is stable tax rate.

There are 18 possible states of the world you will be working with. Assume all these events are independent.

What is the probability of stable currency value, good economy, and increased tax rate? Enter answer in percents.

Reference no: EM132032956

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