subject
Business, 17.01.2020 19:31 completed7

The head of operations for a movie studio wants to determine which of two new scripts they should select for their next major production. she feels that script #1 has a 70% chance of earning $100 million over the long run, but a 30% chance of losing $20 million. if this movie is successful, then a sequel could also be produced, with an 80% chance of earning $50 million, but a 20% chance of losing $10 million. on the other hand, she feels that script #2 has a 60 % chance of earning $120 million, but a 40% chance of losing $30 million. if successful, its sequel would have a 50% chance of earning $80 million and a 50% chance of losing $40 million. as with the first script, if the original movie is a "flop", then no sequel would be produced.1. what is the expected payoff from selecting script #1? a. $150 million. b. $90.6 million. c. $84 million. d. $72 million. e. $60 million.2. what is the expected payoff from selecting script #2? a. $150 million. b. $90.6 million. c. $84 million. d. $72 million. e. $60 million.3. what is the expected payoff for the optimum decision alternative? a. $150 million. b. $90.6 million. c. $84 million. d. $72 million. e. $60 million.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 08:30
Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk
Answers: 3
question
Business, 22.06.2019 19:40
Chang corp. has $375,000 of assets, and it uses only common equity capital (zero debt). its sales for the last year were $595,000, and its net income was $25,000. stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15.0%. what profit margin would the firm need in order to achieve the 15% roe, holding everything else constant? a. 9.45%b. 9.93%c. 10.42%d. 10.94%e. 11.49%
Answers: 2
question
Business, 22.06.2019 20:30
Considered alone, which of the following would increase a company's current ratio? a. an increase in net fixed assets.b. an increase in accrued liabilities.c. an increase in notes payable.d. an increase in accounts receivable.e. an increase in accounts payable.
Answers: 3
question
Business, 23.06.2019 01:30
At the end of the fiscal year, apha airlines has an outstanding non-cancellable purchase commitment for the purchase of 1 million gallons of jet fuel at a price of $4.10 per gallon for delivery during the coming summer. the company prices its inventory at the lower of cost or market. if the market price for jet fuel at the end of the year is $4.50, how would this situation be reflected in the annual financial statements?
Answers: 2
You know the right answer?
The head of operations for a movie studio wants to determine which of two new scripts they should se...
Questions
question
Social Studies, 11.05.2021 03:00
question
French, 11.05.2021 03:00
question
Mathematics, 11.05.2021 03:00
question
SAT, 11.05.2021 03:00
question
Social Studies, 11.05.2021 03:00