The General Chemical Company uses 150,000 gallons of hydrochloric acid per month. The cost of carrying the chemical in inventory

Since the expected value for not suing is greater ($600,000), Jay should refrain from taking legal action. The expected value if he were to sue under the best-case scenario is only $500,000, while the worst-case scenario would yield an expected value of -$37,500. Explanation: if he opts not to sue = expected value is $600,000; if he decides to sue: 50% chance of winning expected value for suing = $2,000,000 x 50% x 50% = $500,000; $500,000 x 50% x 50% = $125,000; 50% chance of losing resulting in an expected value of -$75,000 x 50% = -$37,500.

A, because is the stress really justified for the money offered by B? My answer would be that stress is always harmful.

Answer:

Both divisions are showing equal performance with an ROI of 14%.

Explanation:

The financial figures given have been organized as follows:

                                      Consumer ($)            Commercial ($)

Sales revenue                         22,000                    37,000

Divisional income                       3,850                     3,885

Divisional investment                27,500                   27,750

Current liabilities                      1,000                     800

R&D                                          1,000                   1,000

The resulting calculations are as follows:

Divisional ROI = Divisional income / Divisional investment

Consumer division ROI = $3,850 / $27,500 = 0.1400, or 14%

Commercial division ROI = $3,885 / $27,750 = 0.1400, or 14%

This illustrates that investment returns are equal at 14% for both divisions.