THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 69

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
70% of the customers at the local ice cream shop order their ice cream on a sugar cone.Assume that the next ten customers order independently of one another.
-What is the probability that more than half of them order sugar cones?

• A)0.95
• B)0.85
• C)0.05
• D)0.15

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Definitions:

NPV

NPV (Net Present Value) is a financial metric that calculates the present value of expected future cash flows of an investment, subtracting the initial investment cost.

Initial Cash Outflow

The initial amount of money paid out or expended, typically for an investment or purchase, before any returns are considered.

Required Return

The minimum rate of return an investor expects to achieve by investing in a particular asset or project.

Required Rate

The least yearly interest rate that persuades individuals or entities to dedicate capital to a distinct project or investment opportunity.