The estimates for a project appear in the following table:Dearoptimistic most likely pessimistFixed cost($) 250,000 250,000 250,000Annual profit ($) 20,000 15,000 8,000Shelf life(years) 30 30 30Residual value($) 0 00to. Use the range of values to calculate the heavy average of benefits.b. Using the heavy average, calculate the Equivalent Average Present Value for this project. Use aMARR of 10%.Heavy average annual benefits =$; Average Present Value = $2 points. To receive credit results have to match submitted procedures.c. Send the calculations made to arrive at the answer through the Spreadsheet icon.

The answer has been mentioned below.

cost($) 250,000 250,000 250,000 I profit ($) 20,000 15,000 8,000 ife(years) 30 30 30 al value($) 0 00 e the range of values to calculate the heavy average of benefit ng the heavy average, calculate the Equivalent Average Presen

cost($) 250,000 250,000 250,000 I profit ($) 20,000 15,000 8,000 ife(years) 30 30 30 al value($) 0 00 e the range of values to calculate the heavy average of benefit ng the heavy average, calculate the Equivalent Average Presen

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

The estimates for a project appear in the following table:
Dear
optimistic most likely pessimist
Fixed cost($) 250,000 250,000 250,000
Annual profit ($) 20,000 15,000 8,000
Shelf life(years) 30 30 30
Residual value($) 0 00
to. Use the range of values to calculate the heavy average of benefits.
b. Using the heavy average, calculate the Equivalent Average Present Value for this project. Use a
MARR of 10%.
Heavy average annual benefits =$
; Average Present Value = $
2 points. To receive credit results have to match submitted procedures.
c. Send the calculations made to arrive at the answer through the Spreadsheet icon.

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