=1/The Landmark car park will be shutting down tomorrow after having generated a final cash flow. It has debts of 500 used to finance its activities. Depending on whether the economic situation is good or bad (there is an equal probability of either), the flows are as follows:

Economic situation − +

Operating cash flow 500 1000 Payment of debt −500 −500 Shareholders’ portion of cash flow 0 500 The company is offered an investment yielding 0 if things go badly (−) and 300 if things go well (+).