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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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The developing economies' share of the global gross domestic product (GDP) from 2003 to 2017 is shown in the following table.
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The quadratic function that best models the developing economies' share of the global GDP as a function of the number of years
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3 years ago
Virginia supply offers their customers trade credit with terms 2/15, net 30. this implies that:
Ivenika [448]

This implies that 2%/15 net 30 is a method of giving cash discounts on purchases. What this means is that if the bill is paid within 15 days, there is a 2% discount. Or else, the total amount is payable within 30 days. For instance, if "$1000 2/15 net 30" is printed on a bill, the buyer can take a 2% discount ($1000 x .02 = $20) and make a payment of $980 within 15 days or pay the whole $1000 in 30 days.

5 0
3 years ago
Read 2 more answers
At December 31, 2019, Blanda Company had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2020, Blanda wro
Alex73 [517]

Answer:

journal entries

Write-off

Debit Bad Debts expense $11,000 Credit Accounts receivable $11,000

Recovery

Debit Bank $1,800 Credit Bad Debt Recovered income $1,800

Allowance for Doubtful debt Adjustment

Debit Allowance for doubtful debt Adjustment $4,000 Credit Allowance for doubtful debt $4,000

Explanation:

Write-off

The write-off creates an expense (bad debt) and and decreases an asset ( Accounts receivable)

Recovery

Since the amount has been written off as bad, when it is recovered it is no longer recognized as a payment on accounts receivable but an income the entity thought was lost.

Allowance for doubtful debt adjustment

The differences in the opening balance and closing balance either creates an expense or an income adjustment. These estimates are on net Accounts receivables ( after bad debts) are a negative assets.

19000 - 15000 = 4000(increase) adjustment and is an expense.

7 0
3 years ago
From the following particulars of Purple New Co., prepare the bank reconciliation statement as on May 31, 2016.
juin [17]

Answer:

Explanation:

Bank reconciliation statement:

Cash account balance $3950

Less: Deposit in transit ($900)

Less: Bank service charges ($75)

Add: Interest added to the checking account by the bank $150

Add: Checks outstanding $960

Less: Check drawn incorrectly charged by the bank ($85) [150-65]

Adjusted balance $4,000

5 0
3 years ago
Beech Company produces a single product. The company has 50,000 units in its beginning inventory. Beech's variable production co
sdas [7]

Answer:

Closing inventory = 54,000 units

Explanation:

<em>The difference between profit under variable costing and under absorption costing is simply the value of the change in inventory.</em>

<em>Usually, a decrease in inventory would cause profit under absorption costing to be lower . This is so because cost of goods sold would become higher leading to a lower profit</em>

Difference in profit = POAR × change inventory

POAR- fixed overhead cost per unit- $10,

Difference in profit - $120,000

let the change inventory be y

120,000 = 30 ×   y

y= 120,000/30

y = 4000 units

Inventory at the end = opening inventory  + change inventory

                               = 50,000 + 4000  

                               = 54,000 units

<em>Note; An increase in inventory will produce a higher profit using absorption costing. Hence, we added the change inventory to the opening inventory, to reflect an increase in inventory</em>

7 0
3 years ago
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