What is the expected return on the investment

Assignment Help Business Economics

Reference no: EM131197586

As the Chief Investment Officer for "A Nyce Place to Work" you have been given the opportunity to invest in the Super-Tazer. It is a tazer, that when you push the button incapacitates everyone in a 10 foot radius of you. You have figured out that there are three potential outcomes for this investment:

Outcome Probability Return

1. .25 .10

2. .50 .25

3. .25 .40

What is the expected return on the investment?

Make sure your answer is in a decimal format (.10, .55, etc...) not a percentage (50%). Round (if necessary) to the hundreths position.

Reference no: EM131197586

Questions Cloud

Calculate hunt taxidermys tax liability : Hunt Taxidermy, Inc., is concerned about the taxes paid by the company in 2015. In addition to $43.1 million of taxable income, the firm received $3,035,000 of interest on state-issued bonds and $1,100,000 of dividends on common stock it owns in Oakd..

Considering stock investment in one of two firms : You are considering a stock investment in one of two firms (NoEquity, Inc., and NoDebt, Inc.), both of which operate in the same industry and have identical operating income of $27.5 million. NoEquity, Inc., finances its $50 million in assets with $4..

Explain why income would not be taxable : Explain why income would not be taxable. Give examples of what constitutes Non-Taxable Income. Explain how the income would be excluded and give any formulas or calculations used to show the Non-taxable portion. Also explain if and where you would re..

What was the net new long-term debt : During 2015, Rainbow Umbrella Corp. had sales of $730,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $500,000, $125,000, and $180,000, respectively. Suppose the company paid out $64,000 in cash dividends...

What is the expected return on the investment : As the Chief Investment Officer for "A Nyce Place to Work" you have been given the opportunity to invest in the Super-Tazer. It is a tazer, that when you push the button incapacitates everyone in a 10 foot radius of you. What is the expected return o..

After-tax cash flow from sale is same value : Suppose that ABC Company purchased $10000 of machinery 3 years ago. The machinery is 5-year MACRS property. The firm is selling this equipment today for $5000. What is the aftertax cash flow from this sale if the tax rate is 30%? After-tax cash flow ..

The firm had paid no cash? dividend : Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year? Blazo's common stock was selling for ?$17.95 but by year end it was only ?$15.28. If the firm paid a total cash dividend of $ 1.56 during the? year, what rat..

Liabilities plus owners equity before and after transaction : Explain briefly how each of the following transactions would affect a company's balance sheet. (Remember that assets must equal liabilities plus owners' equity before and after the transaction.)

What is the break-even volume in the first year : The manufacturer, Innovation Beverage, has developed a new breakfast drink, Break-C. Break-C will be packaged in an 8-oz can and introduced to the breakfast drink market, which is estimated to be 21 million 8-oz cans nationally. What is the contribut..

User Account

All Pages