PLEASE TYPE IT OUT NO HAND WRITTEN NOTES

1D)

Bernie's Beverages purchased some fixed assets classified as 5-year property for MACRS. The assets cost $104,000. The book value of the asset at the end of year 3 will be $____. Round it to a whole dollar. MACRS 5-year property

Year	Rate
1	20.00%
2	32.00%
3	19.20%
4	11.52%
5	11.52%
6	5.76%

1E)

You are contemplating a $100,000 investment portfolio containing three different assets. You plan to invest $20,000, $50,000, and $30,000 in assets A, B, and C, respectively. A, B, and C have expected annual returns of 14%, 17%, and 9%, respectively. The expected return of this portfolio is ______%? Round it to two decimal places.

1F)

Given the following probability distribution, what is the expected return of security J? (Expresss your answer in percentage and round it two decimal places, but do not include the percent sign, %, i.e., 4.65)

State		Pi		rJ
Bad		0.2		9%
Neutral		0.6		12
Good		0.2		16