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: 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.)

Question

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:  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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The Answer of 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:  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.)

A Project with a 3-Year Life Has the Following Probability