An energy efficiency project has a first cost of $400,000, a life of 10 years, and no salvage value. Assume that the interest rate 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?

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Nothing will happen.maybe some more oxygen will be saved.but the answer is no.

Ican’t u with this question