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2 8 . CBA corporation is planning to undertake an investment that will cost $ 1 0 , 0 0 0 . The project has

28. CBA corporation is planning to undertake an investment that will cost $10,000. The project has a life of 3 years. The annual cash inflows are uncertain and depend on the state of the economy. The probability distribution of annual cash flow (cash flow per year for three years, Year I through Year 3) is shown below: State of the economy probability annual cash flow Recession. 0.25.3000Normal. 0.50.5000Boom. 0.25.8000The appropriate discount rate (risk-adjusted cost of capital) is 10%. What is the CVpv of this project?a.1.34b.1.41c.1.45d.1.49e.1.55

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