A new engineer is evaluating whether to use a large-diameter pipe for a water line. It will cost $600,000 more initially, but it will reduce pumping costs. The optimistic, most likely, and the pessimistic projections for annual savings are $80,000, $50,000, and $7,500, with respective probabilities of 25%, 45%, and 30%. The interest rate is 8%, and the water line should have a life of 50 years. Required:

(a) What is the PW for each estimated value? What is the expected PW?

(b) Compute the expected annual savings and expected PW.

(c) Do the answers for the expected PW match? Why or why not?

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.

The advertisement demonstrates a popular way companies try to sell a product. what should consumers consider when it comes to the price of this product? it includes shipping and handling costs. it takes into account maintenance costs. it explains why this price is a good deal. it makes the full cost appears lower than it is.

Companies hd and ld are both profitable, and they have the same total assets (ta), total invested capital, sales (s), return on assets (roa), and profit margin (pm). both firms finance using only debt and common equity. however, company hd has the higher total debt to total capital ratio. which of the following statements is correct? a) company hd has a higher assets turnover than company ld. b) company hd has a higher return on equity than company ld. c) none of the other statements are correct because the information provided on the question is not enough. d) company hd has lower total assets turnover than company ld. e) company hd has a lower operating income (ebit) than company ld