Business, 24.05.2021 22:10 sugeilochoa

An energy efficiency project has a first cost of $400,000, a life of 10 years, and no salvage value. Assume that the interest rate is 10%, The most likely value for annual savings is $50,000. The optimistic value for annual savings is $80,000 with a probability of 0.2. The pessimistic value is $40,000 with a probability of 0.25. PW for Optimistic ($80,000)= $91,600
PW for Most Likely ($50,000)=$92,750
PW for Pessimistic ($40,000) =$154,200
PW values (above) come from the calculation:
PW-(Annual Savings)(P/A, 1096, 10)-$400,000
a) What is the expected annual savings and the expected PW?
b) Compute the PW for the pessimistic, most likely, and optimistic estimates of the annual savings. What is the expected PW?
c) Do the answers for the expected PW match? Why or why not?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:30

Given the following information about the closed economy of brittania, what is the level of investment spending and private savings, and what is the budget balance? assume there are no government transfers. gdp=$1180.00 million =$510.00 million =$380.00 million =$280.00 million

Answers: 3

Answer

Business, 22.06.2019 17:00

Vincent is interested in increasing his earning potential upon completing his internship at a major accounting firm. which option can immediately boost his career in the intended direction? b. complete a certification from a professional organization c. complete a new four-year undergraduate program in a related field d. complete a two-year associate degree in a related field e. complete an online course in accounting

Answers: 3

Answer

Business, 22.06.2019 20:40

Cherokee inc. is a merchandiser that provided the following information: amount number of units sold 20,000 selling price per unit $ 30 variable selling expense per unit $ 4 variable administrative expense per unit $ 2 total fixed selling expense $ 40,000 total fixed administrative expense $ 30,000 beginning merchandise inventory $ 24,000 ending merchandise inventory $ 44,000 merchandise purchases $ 180,000 required: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.

Answers: 2

Answer

Business, 23.06.2019 01:10

Match the steps for conducting an informational interview with the task involved in each step or its purpose. 1. research your chosen career field. 2. identify someone to interview. 3. prepare for the interview. 4. conduct the informational interview. 5. follow up with your interviewer. a. learn more about a company that interests you. b. encourage the interviewer to do most of the talking while you take notes. c. write a handwritten -you letter to express that you want to stay in touch. d. make contact through email, a phone call, or mail to arrange the meeting. e. choose a conservative, professional ensemble to wear.

Answers: 3

Answer

You know the right answer?

An energy efficiency project has a first cost of $400,000, a life of 10 years, and no salvage value....

Questions