An architect is considering bidding for the design of a new museum. The cost of drawing plans and submitting a?
An architect is considering bidding for the design of a new museum. The cost of drawing plans and submitting a model is $13,000. The probability of being awarded the bid is 0.1, and anticipated profits are $130,000, resulting in a possible gain of this amount minus the $13,000 cost for plans and a model. What is the expected value in this situation? Round your answer to the nearest dollar.
How much should you make before buying your first Rolex?
As a big fan of luxury watches, let me give you some advice…. Buy it while you are young and have less money tied up in other things!!i bought my first Rolex (a gmt 2 with a coke bezel) at 25. It was a huge amount of money for someone making $45k and my mom and dad thought I was nuts. I spent about 10 years wearing it everyday while traveling in Europe, Africa, and Asia. For many years it was the only thing that I owned that I cared about. I have serviced the thing 2 times and it still keeps great time. I wore it while working out, at the pool, traveling the city and playing at the casino. I cannot tell you how many miles it has been.when I was 35 I bought my 2nd Omega Seamaster Professional) from a friend who was upgrading and shortly after my third luxury watch (Rolex president) because of a nice bonus that I made. Now I wear my president daily and it is rarely put into the safe.If it was not for that awesome bonus, I would have never bought one with my salary in my 30s. But saying that though, when you are young, you have more money to burn than just about any part of your life and it’s one of the greatest things you will own in your lifetime. I think that the next one I will buy I will be 55 and it will be my first trinity watch, which will be a Patel Phillipe Annual calendar.
What is the best way to maximize profit using my 20K?
Hello,Your answer lies in my favorite quotes which I will explain in detail:“Rich people Invest Money and Poor People Spend It” - Grant CardoneIt is important to understand the quote. Rich people invest money in business, for example stocks or shares of a company. They believe in letting money work for them rather than working hard to earn money.Rich people avoid spending money on unnecessary things as its value goes on decreasing over a time. But if you invest in a good company run by great management, you end up appreciating money invested.2. “Poor People have Big TV’S. Rich People Have Big Libraries” - Jim RohnPeople who are rich invest their time in reading good books and avoid useless TV gossips. Warren Buffet usually reads around 500 pages a day while Bill Gates reads around 50 books a year even Elon Musk use to reach two books simultaneously in a day.Its important to invest your money in reading good books which will have great compounding effect in long term.3. “Rich People Thing Big. Poor People Think Small” - T Harv EkerYour thought process will lead to thinking. Its very important to think big. Looking at your amount you should be confident to earn big with minimum cash in hand.Remember many great people start with minimum amount. Whether it is Bill Gates, Warren Buffet, Steve Jobs or Narayan Murthy.Get into the skin of great people by attending good paid seminars, public speaking course or any course which will help you over your life.I hope these three quotes and its description is enough to help you.Invest Money in Good Business which will appreciate your moneyAvoid unnecessary spending of Money.Read Great BooksImprove Your Thinking and Thing Big.Happy Investing!!!!!
Would buying a rental property or two a year, for the next 5 years be a good plan to financial freedom?
To quote Get Shorty, “You don’t have a movie, you have an idea for a movie.”So, you don’t have a plan, you have an idea for a plan. It needs more detail to be a plan.Can it work? Sure, just like buying one or two stocks a year for the next five years can work. Can it fail spectacularly? Sure.The difference between success and failure is which rental properties you buy. Choose well, and you can make 15% or perhaps more on your investment with very little further demands on your time. Choose poorly, and you will lose money and stay busy doing it.But can it be a path to financial freedom? Yes. Let’s say you make 10% annually on your invested capital. At $500K invested, you’re making a small salary. At $1M invested, you’re living comfortably. (Note, BTW, I have phrased this in terms of capital invested, not in terms of numbers of units. The relation between the two depends on the market. In Boston, $500K in capital might only cover one apartment without a mortgage, or maybe 2–4 if they’re financed. In Birmingham, Alabama I’d expect $500K to represent a much greater number of units.)
Radha spends 40% of her salary on food, 20% on house rent, 10% on entertainment and 10% on conveyance. If her savings at the end of the month are Rs 1500, then what is her monthly salary?
40+20+10+10=80This means 80% of the monthly income is spent on various items.Therefore what is left is 20% of incomeIn other words Rs 1500 = 20% of incomeThat means 100% = 20X5 or 1500 X 5 = Rs 7,500.
I am almost a million dollars in debt. I make $28,000 a year in San Francisco. How do I get out of debt?
There’s a saying that goes “owe someone a million dollars, you’ve got a problem… owe someone a billion dollars, they’ve got a problem”.I feel like this applies at a step down to your situation. With earnings of just $28,000 per year, you should not ever have had access to a million dollars in credit. Suppose you earned 10 times that amount at $280,000… then that’s a bit more realistic. Assuming that you could be taken to court for the amount you owe, and you settle at 30% off to pay down only $700,000, they’d only need to garnish 25% of your wages for 10 years to pay off the full amount.In your case, it would take 100% of your wages (before tax, too) over a course of 35 years to pay down a million dollars in debt.To the $280,000 earner, they’d have a problem if they owed a million dollars because they actually have a way of having that amount taken out of them over time, in order to settle the debt. Thus, the debt is the borrower’s problem, because it’s worthwhile for the lender to go after them and use the debt against the borrower.To the $28,000 earner, the problem is with the lender… because recovering that million dollars is so far out of reach at that level of income, that any amount of effort on the lender’s part will likely be disproportionate to what amount of money they can extract to try and settle the debt. Thus, the debt is the lender’s problem, because they’re out a million dollars, with no realistic way to recover it from the borrower.How do you get out of debt? The short answer is forget about it. You’re going to owe this money unless you get the debt written off, or declare bankruptcy. Taking living expenses and income tax into account, mathematically there is no way you could ever pay this debt down. So you can’t get out of this debt… but you can see what you can do to try and make it not affect you somehow. Perhaps run off to another country, or disappear without a trace. That will help you pretend the debt doesn’t exist, to prevent it from affecting you.