An energy efficiency project has a first cost of $300,000, a life of 10 years, and no salvage value. assume that the interest rate is 9%. the most likely value for annual savings is $60,000. 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 0.3. a) what is the expected annual savings? b) the expected pw? c) compute the pw for the pessimistic? d) most likely? e) and optimistic estimates of the annual savings?

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers.b) may not accept the offer because it is considered lavish entertainment.c) must obtain written consent from batts brothers before accepting the offer.