Let X = damage incurred ($) in a certain type of accident. Possible X values are 0, 2000, 4000, and 9000, with probabilities .7, .15, .1, and .05 respectively. A particular company offers a $500 deductible policy, which means they do not pay the first $500 of any damage incurred. So if you have a $1000 accident, then they will pay for $1000 - $500 of it. If the company wishes its expected profit to be $100, what premium amount should it charge? The premium is what the insurance company charges you for buying insurance.

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $