Question 2.A company determined to expand its existing capacity for the next three years. Assume the demand for the next three years are 15, 30, and 60, respectively and the existing capacity is 8(Note, you will need to calculate the demand of increase first for each period). The cost of capacity expansion is 100 x2where x is the amount of the capacity expanded(Note that if expansion is zero, then the cost is zero, NOT 100!). Findthe optimal capacity expansion plan for the next three years using discount rate of one.

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale.required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse.b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this.c. explain the difference between sale of receivables with recourse as oppose to without recourse.