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4 The Caribou Pipeline Company projects a pattern of Inflows from the Investment shown in the following table. The inflows are spread over time to
4 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. Year 1 Cash Inflow Probability 90 9.48 110 9.29 130 0.40 Year 5 Cash Inflow Probability 80 0.35 110 8.30 14e 0.35 Year 10 Cash Inflow Probability 70 8.30 110 8.40 150 9.30 4 points 8 01:29:03 The expected value for all three years Is $110. 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 5 percent and 10 percent discount rate, complete the table for present value factors. (Round the final answers to 3 decimal places.) Year 1 5 PVIF 5 Percent @.952 PVIF 10 Percent @.999 Difference @.843 10 d. This part of the question is not part of your Connect assignment. --1. Assume the initial Investment is $180. What is the net present value of the expected values of $110 for the Investment at a 10 Year 5 Year le 4 b. This part of the question is not part of your Connect assignment. C. Assuming a 5 percent and 10 percent discount rate, complete the table for present value factors. (Round the final answers to 3 decimal places.) 4 points 8 01:26:41 PVIF 5 Percent 0.952 PVIF 10 Percent 0.999 Difference @.843 Year 1 5 1e d. This part of the question is not part of your Connect assignment e-1. Assume the initial Investment is $180. What is the net present value of the expected values of $110 for the Investment at a 10 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 --2. Should the investment be accepted? Yes O NO
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