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pogonyaev
3 years ago
14

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

te is 10 years, 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.
1.What is the expected annual savings and the expected PW?
2.Compute the PW for the pessimistic, most likely, and optimistic estimates of the annual savings. What is the expected PW?
3.Do the answers for the expected PW match? Why or why not?
Business
1 answer:
Gala2k [10]3 years ago
7 0

Answer:

See attached files

Explanation:

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A company's prime costs total $3,800,000 and its conversion costs total $7,800,000. If direct materials are $1,400,000 and facto
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Explanation:

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3 years ago
Suppose that Freddie's Fries has annual sales of $520,000; cost of goods sold of $395,000; average inventories of $11,000; avera
Nadusha1986 [10]

Answer:

8.78

Explanation:

The computation of the cash cycle is given below;

We know that

Cash cycle = Inventory conversion period + Receivables conversion period - Payables conversion period.

Here

1. Inventory conversion period = Avg. Inventory ÷ (COGS ÷365)

= (11,000) ÷ (395000 ÷ 365)

= 10.16

2. Receivables conversion period = Avg. Accounts Receivable ÷ (Credit Sales × 365)

= (27000/520000) × 365

= 18.95

3. Payables conversion period = Avg. Accounts Payable ÷ (Purchases  × 365)

= (22000 ÷ 395000) × 365

= 20.33

Now the cash cycle is

= 10.16 + 18.95 - 20.33

= 8.78

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