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Business, 10.07.2021 01:10 gennhill14

Greenbaum Inc. sells a new product with a 2-year warranty. The company estimates that during the two years, the costs and related probabilities are: Year 1: $20,000 (40%) and $30,000 (60%); Year 2: $30,000 (70%); $20,000 (30%).The company's effective interest rate is 5%. Calculate the estimated warranty liability using the expected cash flow method.

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Greenbaum Inc. sells a new product with a 2-year warranty. The company estimates that during the two...
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