David NGoliath Is Planning to Open a Sporting Goods Store

question 92

Essay

David N.Goliath is planning to open a sporting goods store.However,the initial investment is $120,000.He currently has this money in a certificate of deposit earning 10 percent.He may leave it there if he decides not to open the store.If he opens the store and it is successful he will generate a profit of $50,000.If it is not successful,he will lose $90,000.What would the probability of a successful store have to be for David to prefer this to investing in a CD?

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Definitions:

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water, generating oxygen as a byproduct.

Carbon Dioxide Fixation

The process of converting atmospheric carbon dioxide into a usable form of carbon by living organisms, crucial in photosynthesis.

RuBP

Ribulose biphosphate, a molecule that acts as the acceptor of carbon dioxide in the first step of the Calvin cycle during photosynthesis.

Carbons

Chemical elements with the symbol C and atomic number 6, essential to all known life, and the basis of organic chemistry.