Marc's Ferrari Driving Company (MFDC) is taking advantage of their unexpected success. They are launching a new subsidiary called Marc's Snowmobile Driving Company (MSDC). Even more surprising is that they are launching in Weatherford. You have predicted what their likely income will be in different weather conditions, along with the probability of those weather conditions occurring. Most of your summary is presented in the table below, and these are the only weather conditions that will matter for this business. Weather Condition Probability Projected Profits Sunny and Warm 81.9% - $20,000 Cool and Cloudy 9.3% $14,000 Snowy and Cold ? $680,000 What would a rational investor expect the profits to be in a typical year? (Answer in dollars, rounded to the nearest penny. For example, if your answer is $123.456 you should enter 123.46) How risky are these annual profits? Use our measure for risk. (Answer in dollars, rounded to the nearest penny. For example, if your answer is $123.456 you should enter 123.46) Assume that the form needs to raise funds to launch. The investor community wants to be reasonably confident that the firm won't lose money. Will the investor community want to lend to this company? Explain why you believe they would or wouldn't, offering specific evidence to support your argument. Marc's Ferrari Driving Company (MFDC) is taking advantage of their unexpected success. They are launching a new subsidiary called Marc's Snowmobile Driving Company (MSDC). Even more surprising is that they are launching in Weatherford. You have predicted what their likely income will be in different weather conditions, along with the probability of those weather conditions occurring. Most of your summary is presented in the table below, and these are the only weather conditions that will matter for this business. Weather Condition Probability Projected Profits Sunny and Warm 81.9% - $20,000 Cool and Cloudy 9.3% $14,000 Snowy and Cold ? $680,000 What would a rational investor expect the profits to be in a typical year? (Answer in dollars, rounded to the nearest penny. For example, if your answer is $123.456 you should enter 123.46) How risky are these annual profits? Use our measure for risk. (Answer in dollars, rounded to the nearest penny. For example, if your answer is $123.456 you should enter 123.46) Assume that the form needs to raise funds to launch. The investor community wants to be reasonably confident that the firm won't lose money. Will the investor community want to lend to this company? Explain why you believe they would or wouldn't, offering specific evidence to support your argument
