Reference no: EM13953538
FAVORABLE UNFAVORABLE
MARKET MARKET
EQUIPMENT: ($) ($)
Sub 100 300,000 -200,000
Oiler J 250,000 -100,000
Texan 75,000 -18,000
3-19 The Lubricant is an expensive oil newsletter to which many oil giants subscribe, including Ken Brown (see Problem 3-17 for details, table provided above). In the last issue, the letter described how the demand for oil products would be extremely high. Apparently, the American consumer will continue to use oil products even if the price of these products doubles. Indeed, one of the articles in the Lubricant states that the chances of a favorable market for oil products was 70%, while the chance of an unfavorable market was only 30%. Ken would like to use these probabilities in determining the best decision.
(a) What decision model should be used?
(b) What is the optimal decision?
(c) Ken believes that the $300,000 figure for the Sub 100 with a favorable market is too high. How much lower would this figure have to be for Ken to change his decision made in part (b)?
|
Deferred tax account for kunkel corporation
: Calculate the balance to be reflected in the Deferred Tax account for Kunkel Corporation for each year 2014 through 2018.
|
|
Temporary and permanent differences
: Madden Corporation wants to determine the amount of deferred tax that should be reported on its 2014 financial statements. It has compiled a list of differences between the accounting conducted for tax purposes and the accounting used for financia..
|
|
What is the measurement of each of the angles of rectangle
: 68% it will rain tomorrow. What is the probability it will not rain tomorrow?
|
|
What is the minimum thickness of the sheet
: Laser light 633nm is normally incident on a 0.100-mm-wide slit in a thin opaque plastic sheet floating on the surface of a swimming pool. Calculate the width of the central maximum at the bottom of the pool 4.50 m below the surface?
|
|
What is the optimal decision
: Ken believes that the $300,000 figure for the Sub 100 with a favorable market is too high. How much lower would this figure have to be for Ken to change his decision made in part (b)?
|
|
How many complete dark fringes would seen on distant screen
: Now suppose that the wavelength of light is 134% larger than the slit separation. How many complete dark fringes would be seen on a distant screen?
|
|
Problem regarding the leased assets
: Koffman and Sons signed a four-year lease for a forklift on January 1, 2014. Annual lease payments of $1,510, based on an interest rate of 8%, are to be made every December 31, beginning with December 31, 2014.
|
|
Compute the odds of each of the following events and rank
: You are playing poker and you are dealt the A, K, Q, J, 10 of spades.
|
|
Financial statement impact of a lease
: Benjamin's Warehouse signed a six-year capital lease on January 1, 2014, with payments due ev- ery December 31. Interest is calculated annually at 10%, and the present value of the minimum lease payments is $13,065.
|