Question: I need help finding the expected return. All I have is what is provided and I cannot understand how to put an equation together to
I need help finding the expected return. All I have is what is provided and I cannot understand how to put an equation together to find the expected return????????????
Below is the assignment....
As you know, the company has had a very profitable quarter, and management has decided to accrue a liability previously disclosed concerning a hazardous waste site cleanup. I need to provide financial accounting with an accrual amount for the quarters financial reporting.
Management has decided to accrue at the lower range of the 68% confidence interval and has asked me to provide the dollar amount. Im giving you this assignment.
Heres what you need to know:
Environmental Engineering has provided the following cleanup forecast with probabilities in parentheses (in thousands of dollars):
Low estimate $15,000 (0.20)
Most likely $20,000 (0.70)
High estimate $25,000 (0.10)
Heres what I need from you:
Provide the accrual amount for the quarterly 10Q statement
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