You have a project that costs $800,000. It has a 1/3 chance of paying off $3,000,000 and a 2/3 chance of paying off $0. What is the expected payoff from the new project?
A) $500,000
B) $800,000
C) $1,000,000
D) $1,200,000
Answer: C
Explanation: C) Expected Payoff (Project) = (1/3) × $3,000,000 + (2/3) × $0 = $1,000,000.
Business
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Estate D has gross income of $80,000 of which $20,000 is allocated to corpus and $60,000 to the beneficiaries after expenses. Depreciation for the year is $8,000. The decedent's will does not provide a reserve for depreciation. What is the amount of depreciation that Estate D can deduct?
A. $0 B. $2,000 C. $6,000 D. $8,000
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A) Demand B) Learning C) Economic D) Psychological E) Demographic
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