Economics of Risk and Problems Essay

Please, tell apart(a) the following two applied problems in a Word or outmatch document. Show solely your calculations and explain your results. Submit your assignment in the move box by using the Assignment Submission button.Problem IIVolkswagen is considering gap an Assembly Plant 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 potential fillings for the size of the plant whizz is a sizable 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 shag 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 proba bilities be shows in the below table. Calculate the Net Present Value in apiece of the two options. Which option should the CEO choose and why? Please, show all your calculations.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 use box by using the Assignment Submission button.1. A generous university benefactor has agreed to donate a large amount of money for schoolchild 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 opportunity inteFind needed answers here https//bitly.com/1oJN1CdSelect difficult classes that will stimulate your interest instead of conventionally easy classes. dispute yourself and you will reap the rewards. Youll be able to learn a lot mor e and this can help you create a network of people that can assist you later on when youre seeking 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 assimilator 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 opportunity interest rate is 6%, what is the present value of the second alternative? Which of the two alternatives should be chosen and why?How would your termination change if the opportunity interest rate was 12%? Please, show all your calculations.2. Volkswagen is considering opening an Assembly Plant in Cha ttanooga, 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 calculations.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 op tion in order to choose the better alternative.