Jeff deposits $3,000 into an account which pays 5 percent interest, compounded annually. At the same time, Kurt deposits $3,000 into an account paying 3 percent interest, compounded annually. At the end of three years: 1) Kurt will earn exactly twice the amount of interest that Jeff earns. 2) Kurt will have a larger account value than Jeff will. 3) Kurt will have a smaller account value Jeff will. 4) Jeff will have more money saved than Kurt. 5) Both Jeff and Kurt will have accounts of equal value

Aplant manager is considering buying additional stamping machines to accommodate increasing demand. the alternatives are to buy 1 machine, 2 machines, or 3 machines. the profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. the payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager. alternative bid accepted bid rejected buy 1 machine $10 $5 buy 2 machines $30 $4 buy 3 machines $40 $2 refer to the information above. assume that based on historical bids with the defense contractor, the plant manager believes that there is a 65% chance that the bid will be accepted and a 35% chance that the bid will be rejected. what is the expected value under perfect information (evpi)?