Assume That Picnic Paper Co Instructions
Based on These Estimates, and Assuming a Risk-Free Rate

Assume that Picnic Paper Co. has several minor lawsuits outstanding. To determine the amount of liability to recognize on the statement of financial position, Picnic decides to use expected cash flow techniques. Based on discussions with their lawyers, Picnic has developed the following cash flow estimates, and related probabilities:
$$\begin{array} { c c l } \text { Year } & \text { Cash Flow Estimate } & \text { Probability Acsearment } \\\mathbf { 2 0 2 0 } & \mathbf { \$ 2 , 3 0 0 } & 30 \% \\& \$ 4,500 & 45 \% \\& \$ 8,200 & 25 \%\end{array}$$ $\begin{array}{c}\begin{array}{lll}2021\\\\\\\end{array}\begin{array}{l}\$ 3,200 \\\$ 5,400 \\\$ 7,100 \end{array}\begin{array}{lll}20\%\\50\%\\30\%\end{array}\end{array}$
Instructions
Based on these estimates, and assuming a risk-free rate of 5%, what is the present value of expected cash flows that Picnic should record on their statement of financial position for 2020?