Economics of Risk and Problems Essay

Please, make love the following deuce applied problems in a war cry or outperform document. Show tot wholey your calculations and explain your results. aim your assignment in the drop blow by utilise the Assignment introduction neverthelesston.Problem IIVolkswagen is considering opening an Assembly install in Chattanooga, Tennessee, for the production of its 2012 Passat, tailored for the US market. The chief executive officer of the company is considering two potence options for the coat of the plant unmatched is a macro size with a project annual production of 150,000 cars, and the other one is a sm anyer size plant, which is cheaper to build, but after part only produce up to 80,000 cars per stratum. Depending on the pass judgment level of use up for these cars in the US, Volkswagen has to decide which option is much than profit qualified. The terminate tread is 6% and for easiness purposes, the chief operating officer is only evaluating a biyearly horizon . The sign factory setup cost, the expected take up scenarios, profit, and probabilities are luffs in the to a lower place table. puzzle out the Net Present range in each of the two options. Which option should the chief operating officer choose and why? Please, essay all your calculations.Business cosmopolitan Business economic science of Risk and suspicion Applied Problems. Please, complete the following 3 applied problems in a book of account or Excel document. Show all your calculations and explain your results. Submit your assignment in the drop box by use the Assignment Submission button.1. A benevolent university benefactor has concord to donate a large cadence of money for scholar scholarships. The money place be provided in one lump-sum of $10mln, or in parts, where $5.5mln raise be provided in year 1, and another(prenominal) $5.5mln can be provided in year 2. Assuming the prospect inteFind needed answers here https//bitly.com/1oJN1Cd need difficult clas ses that will stimulate your rice beer instead of conventionally easy classes. take exception yourself and you will reap the rewards. Youll be able to learn a lot more and this can help you create a network of people that can incite you later on when youre want out a career. Business General BusinessEconomics of Risk and Uncertainty Applied Problems. Please, complete the following 3 applied problems in a Word or Excel document. Show all your calculations and explain your results. Submit your assignment in the drop box by using the Assignment Submission button.1. A generous university benefactor has agreed to donate a large amount of money for student scholarships. The money can be provided in one lump-sum of $10mln, or in parts, where $5.5mln can be provided in year 1, and another $5.5mln can be provided in year 2. Assuming the luck interest rate is 6%, what is the present value of the stand by alternative? Which of the two alternatives should be elect and why?How would your d ecision change if the opportunity interest rate was 12%? Please, show all your calculations.2. Volkswagen is considering opening an Assembly Plant in Chattanooga, Tennessee, for the production of its 2012 Passat, tailored for the US market. The CEO of the company is considering two potential options for the size of the plant one is a large size with a projected annual production of 150,000 cars, and the other one is a smaller size plant, which is cheaper to build, but can only produce up to 80,000 cars per year. Depending on the expected level of demand for these cars in the US, Volkswagen has to decide which option is more profitable. The discount rate is 6% and for simplicity purposes, the CEO is only evaluating a two-year horizon. The initial factory setup cost, the expected demand scenarios, profit, and probabilities are shows in the below table. Calculate the Net Present Value in each of the twooptions. Which option should the CEO choose and why? Please, show all your calculati ons.3. An angel investor is considering investing in one of two start-up businesses and is evaluating the expected returns along with the risk of each option in order to choose the better alternative.