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?

On december 31, 2016, the decarreau, andrew, and bui partnership had the following fiscal year-end balance sheet: cash $10,000accounts receivable $20,000inventory $25,000plant assets - net $30,000loan to decarreau $18,000total assets $103,000accounts payable $14,000loan from bui $15,000decarreaua, capital (20%) $32,000andrew, capital (10%) $23,000bui, capital (70%) $19,000total liab./equity $103,000the percentages shown are the residual profit and loss sharing ratios. the partners dissolved the partnership on january 1, 2017, and began the liquidation process. during july the following events occurred: * receivables of $18,000 were collected.* all inventory was sold for $15,000.*all available cash was distributed on january 31, except for$8,000 that was set aside for contingent expenses.the book value of the partnership equity (i.e., total equity of the partners) on december 31, 2016 isa. $58,000b. $71,000c. $66,000d. $81,000