Assume that kyle is offered a gamble with 50% chance to win $250 and 50% chance to lose $100. assume that he is risk-neutral (u(x) = x) and his disappointment coefficient beta is 1.5. using disappointment theory, what would kyle choose among the following options: do not participate, play once play twice with a single payment made at the end. (exponential vs. quasi-hyperbolic discounting) since you have to study for the final exams, you are going to miss the broadcast of one of the last two football games of your team. either you are going to miss game 1 at t=l, or you are going to miss game 2 at t = 2. assume that game 1 gives you a utility of 15, and game 2 gives you a utility of 36. suppose you discount future utilities exponentially with a discount factor delta = 2/3. which game do you prefer to watch when asked now (at t=0)? are your preferences the same when asked in the next week (at t=1)? now suppose that you have tastes for immediate gratification, formally you use quasi-hyperbolic discounting with beta = 1/2 and delta = 2/3. which game do you prefer to watch when asked now (at t=0)? are your preferences the same when asked in the next week (at t=1)?
Answers: 3
Another question on Business
Business, 22.06.2019 04:40
Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Answers: 3
Business, 22.06.2019 10:30
The advertisement demonstrates a popular way companies try to sell a product. what should consumers consider when it comes to the price of this product? it includes shipping and handling costs. it takes into account maintenance costs. it explains why this price is a good deal. it makes the full cost appears lower than it is.
Answers: 1
Business, 22.06.2019 12:50
You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400
Answers: 3
Business, 22.06.2019 14:30
You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should
Answers: 1
You know the right answer?
Assume that kyle is offered a gamble with 50% chance to win $250 and 50% chance to lose $100. assume...
Questions
Computers and Technology, 13.08.2019 03:30
