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A company estimates that it has a 50% chance of being successful in bidding on a $50,000 contract. If it costs $5000 in consultant fees to prepare the bid, what is the expected gain or loss for the company if it decides to bid on this contract?

a. $20,000.00 b. $49,875.06 c. $50,237.72 d. $50,057.57

2007-12-09 17:23:06 · 2 answers · asked by Chris 1 in Science & Mathematics Mathematics

2 answers

50%(50,000) - 100%(5000) =
25,000 - 5000 =
20,000 gain.

2007-12-10 02:07:12 · answer #1 · answered by Philo 7 · 0 0

its (a) $20 000

2007-12-10 01:34:28 · answer #2 · answered by rhom_tryme 2 · 0 0

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