What Would Be the Expected Monetary Value for Avalia Corp

question 139

Multiple Choice

What would be the expected monetary value for Avalia Corp using the probability method? $$\begin{array} { c c } \text { Probability } & \text { Cash Inflows } \\0.20 & \$ 200,000 \\0.30 & \$ 160,000 \\0.15 & \$ 120,000 \\0.35 & \$ 50,000\end{array}$$

• A) $40,000
• B) $188,000
• C) $123,500
• D) $60,000

---

Definitions:

Just Tangent To

A condition where two curves meet at only one point without intersecting, often used in the context of optimizing problems.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing to buy at each price.

New Firms Enter

The process by which new companies start operations in a market, often increasing competition and innovation within the industry.

More Elastic

The term "More Elastic" describes a situation where the supply or demand for a good or service is more responsive to changes in price.