Solve the Problem. -A Company Estimates That It Has a 30% Chance of 30

question 80

Multiple Choice

Solve the problem.
-A company estimates that it has a 30% chance of being successful in bidding on a $40,000 contract. If it costs $6000 in consultant fees to prepare the bid, what is the expected gain or loss for the Company if it decides to bid on this contract?

• A) $6000.00
• B) $17,017.92
• C) $17,380.58
• D) $17,200.43

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Definitions:

Dodge Dart

A model of compact car produced by the American automobile manufacturer Dodge, known for its sporty design and performance.

Cashier's Check

A check issued by a bank, drawn from its own funds and signed by a cashier, considered very secure as it guarantees the available amount of cash.

Paying

The act of giving money, goods, or other forms of value in exchange for an item, service, or to fulfill an obligation.

Debt

An amount of money borrowed by one party from another, often with the condition of repayment with additional interest.