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5 . 5 Other Time Value of Money Issues Daniel runs a bakery. The cash flow estimate for the bakery is $ 9 5 ,

5.5

Other Time Value of Money Issues

Daniel runs a bakery. The cash flow estimate for the bakery is $

95, 600,

with a

35 %

probability, and $

60, 500,

with a

65 %

probability. The present value factor is

0.95238 .

Given this information, what is the expected cash flow?

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