It Is Estimated That 20% of Luxury Cars Manufactured in 2008

question 1

Multiple Choice

It is estimated that 20% of luxury cars manufactured in 2008 were silver.A car dealership typically sells 20 luxury cars per month.The probability that 8 of the luxury
Cars sold per month are silver is

• A).0006.
• B).1276.
• C).0222.
• D).7779
• E)None of the above.

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Definitions:

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, calculated by summing the present values of incoming and outgoing cash flows.

Cost of Capital

The rate of return that a company must pay on its investments to satisfy its shareholders or debt-holders.

Cash Flows

All money transactions entering and leaving a firm, with a significant influence on its liquidity.

Interest Payments

The amount paid by a borrower to a lender as compensation for the use of borrowed money.