Cr. Drawing account
i
Dato
Particulars
Amount
(Rs.)
5.000
by Balance eld
5,000
2.000
5.000
Ans 62.000
transactions of ABC Services are provided to you:
Started service rm with cash R$ 100.000
Padurniture for Rs 50000 paying Ra 10.000 cash and signing Rs 40.000 one year 5%
more payable for the balance
Mes Purchased office supplies on account Rs 1000.
medients os 20 000 for services performed
Pane Advertisement hull paid Rs 5.000
me te Panhall amount for office supplies that were purchased in June 6
de 22 RecenRs 15.000 cash from clients billed on June 10,
2 Cash withdrew by owner Rs 3.000
ne 30 Pants 2.000 for utilities
Required Thal balance
30.000.000
3000 30000
2000.000​

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?