1 A company has an opportunity to invest in a machine that will last two years initially and cost $145000. The firm has determined that its after-tax cash inflow (ATCI) distributions are not independent and it has the following estimated after-tax cash inflow pattern: Year 1 After tax cash inflow ($) 55000 68000 90000 Probability 0.4 0.25 0.35 Year 2 If after tax cash inflow=55000 ATCIF 36000 64000 92000 Prob. 0.3 0.4 0.3 If after tax cash inflow=68000 ATCIF 84000 96000 100000 Prob. 0.2 0.6 0.2 If after tax cash inflow=90000 ATCIF 90000 106000 110000 Prob. 0.3 0.4 0.3 Set up a decision tree and determine if the investment should be accepted when the cost of capital is 8% (14)