Probability analysis in estimating returns
Problem: Consider the use of probability analysis in estimating returns and determining the standard deviation. You may use a hypothetical situation and do the calculations or just describe the steps in the process.
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Bob's Burritos sells all of their burritos for $4.50 while the cost is only $3.00. If the monthly fixed expense is $1,500, how many burritos must Bob sell a month to breakeven?
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Consider the use of probability analysis in estimating returns and determining the standard deviation. You may use a hypothetical situation and do the calculations or just describe the steps in the process.
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Question: The Degree of Operating Leverage (DOL) is A) 1.58x B) 1.95x C) 3.50x D) 1.40x
What effect would depreciation have on the projects selection criteria:
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