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1 The Caribou Pipeline Company projects a pattern of inflows from the investment shown in the following table. The inflows are spread over time to

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1 The Caribou Pipeline Company projects a pattern of inflows from the investment shown in the following table. The inflows are spread over time to reflect delayed benefits. Each year is independent of the others. Ye Cash flow se 100 110 0.40 0.20 0.40 Years Cash Info Probability 30 8.35 100 6.30 120 0.35 Year 10 Cash Inflow Probability 70 0.30 100 0.40 130 0.30 The expected value for all three years is $100 a. Compute the standard deviation for each of the three years. (Round the final answers to 2 decimal places.) Standard deviation Year 1 Year 5 Year 10 b. This part of the question is not part of your Connect assignment c. Assuming a 9 percent and 18 percent discount rate, complete the table for present value factors. (Round the final answers to 3 decimal places.) Year PVIF 9 Percent 8.917 PVIF 15 percent 0.847 Difference 0.070 1 5 10 d. This part of the question is not part of your Connect assignment b. This part of the question is not part of your Connect assignment c. Assuming a 9 percent and 18 percent discount rate, complete the table for present value foctors. (Round the final answers to 3 decimal places.) NVIF 9 Percent PVIF I Percent Difference 9.917 100 Year 1 5 10 0.847 9.070 d. This part of the question is not part of your Connect assignment e-1. Assume the initial investment is $155. What is the net present value of the expected values of $100 for the investment at a 18 percent discount rate (Round "PV Factor" to 3 decimal places. Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 1 decimal place.) Net present value e-2. Should the investment be accepted? ONo Yes

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