Use the Information for the Question(s)below

question 7

Multiple Choice

Use the information for the question(s) below.
You own a small manufacturing plant that currently generates revenues of $2 million per year.Next year,based upon a decision on a long-term government contract,your revenues will either increase by 20% or decrease by 25%,with equal probability,and stay at that level as long as you operate the plant.Other costs run $1.6 million per year.You can sell the plant at any time to a large conglomerate for $5 million and your cost of capital is 10%.
-If you are awarded the government contract and your sales increase by 20%,then the value of your plant will be closest to:

• A)$5 million.
• B)$8 million.
• C)$0.
• D)$4 million.

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Definitions:

Hypotonic Solution

A solution that has a lower concentration of solutes compared to another solution, causing water to move into the cell in osmosis.

Net Movement

The overall transfer or migration of substances, such as molecules or ions, from an area of higher concentration to an area of lower concentration, often referring to processes like diffusion.

Sodium-potassium Pumps

Cellular membrane proteins that actively transport sodium out of and potassium into cells, essential for maintaining cell volume and resting membrane potential.

Ion Pumps

Proteins found in the cell membrane that use energy to transfer ions against their concentration gradient, maintaining the internal balance of cells.