1. John approached you with a business proposition to invest in a project. The Annual Cash Flows (CFt) are uncertain. Höwever, the folloWing PrObaDmy UISUIDODON provides you with expectations: Probability P(CF) Probable Cash Flow (CF) $80,000 $140,000 $180,000 15 55 30 What is the expected Annual Cash Flow from this project?

1. John approached you with a business proposition to invest in a project. The Annual Cash Flows (CFt) are uncertain. Höwever, the folloWing PrObaDmy UISUIDODON provides you with expectations: Probability P(CF) Probable Cash Flow (CF) $80,000 $140,000 $180,000 15 55 30 What is the expected Annual Cash Flow from this project?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section: Chapter Questions

Problem 23SP

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