Mr. bell buys a home for an unspecified amount. he pays a down payment of $20,000 and finances the remainder for 15 years with level end-of-month payments of $1,692. the annual effective interest rate for the first five years is 4%, and thereafter it is 6%. mr. bell sells the house just after making his 100th mortgage payment. the selling price is $258,000. how much money will mr. bell get at closing? (remember, the loan holder is paid first, and then mr. bell receives the balance of the inflow from the resale.)

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.