Jayce products buys a $500,000 machine by taking out a bank loan. the company's assets will by $500,000 while its liabilities will by $500,000.

Explanation:

Base on the scenario been described in the question, we use the following method to solve the given problem.

Step 1

Expected value of profit can be calculated by using formula: Selling price - Expected value of Procurement cost - Expected value of Labour cost - Expected value of Transportation cost

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Step 2

Expected value of Profit = $45 - $11.05- $23.4 - $3.5 = $ 7.05

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Step 3

Confidence Interval can be calculated by using the formula shown below

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