You just turned 35 and have been saving for an around-the-world vacation. you want to take the trip to celebrate your 40th birthday. you have set aside, as of today, $15,000 for such a trip. you expect the trip will cost $25,000. the financial instruments you have invested the $15,000 in have been earning, on average, about 8%. (you may ignore income taxes). (a) will you have enough money in that vacation account on your 40th birthday to take the trip? what will be the surplus or shortfall in that account when you turn 40? (b) if you had to, you could further fund the trip by making, starting today, five annual $500 contributions to the account. if you adhere to such a plan, how much will be in the account on your 40th birthday?

Aeuropean aircraft producer has spent 15 years in developing a new aircraft that would potential threaten long-lasting boeing's dominance (monopoly) in the same class of aircrafts. the new european aircraft gets high marks on all performance measures except noise. because of the noise, the european producers management is concerned that the us government may impose restrictions which would forbid their aircraft to land in some of the american airports. without restrictions the estimated (present discounted) profit would be 125 million usd. with the restrictions the profit would only be 25 million usd. the chances of both outcomes are estimated to be 50-50. management must decide now whether to the cost of redesign program problem and a 60% chance it will fail. should the european aircraft producer start the noise redesign program if they do not have any redesign parts of the aircraft to solve the noise problem. is 25 million usd. there is a 40% chance that redesign will solve the noise additional information than mentioned above? draw the decision tree, indicate probabilities and outcomes of the events * imagine that the company could find out in advance the outcome of the u.s. government's e find the expected value of perfect information about the u.s. government's decision. decision. draw a new decision tree, indicate probabilities and outcomes of the events.