A project with a 3year life has fallowing probability disturbution
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A project with a 3-year life has the following probability distributions for possible end-of-year cash flows in each of the next three years:
Year 1 Year 2 Year 3
Prob Cash Flow Prob Cash Flow Prob Cash Fl
0.30 $300 0.15 $100 0.25 $200
0.40 500 0.35 200 0.75 800
.30 700 0.35 600 0.15 900
Using an interest rate of 8 percent, find the expected present value of these uncertain cash flows. (Hint: Find the expected cash flow in each year, then evaluate those cash flows.)
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Year 1 Year 2 Year 3
Prob Cash Flow Prob Cash Flow Prob Cash Fl
0.30 $300 0.15 $100 0.25 $200
0.40 500 0.35 200 0.75 800
.30 700 0.35 600 0.15 900
Using an interest rate of 8 percent, find the expected present value of these uncertain cash flows. (Hint: Find the expected cash flow in each year, then evaluate those cash flows.)
Hope this will be helpful to you...
Plz mark it as brainliest...
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