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5. Simpson Inc. has a cash flow of $750,000 to be received during the next three years, 2018, 2019 and 2020 with probabilities of 40%,

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5. Simpson Inc. has a cash flow of $750,000 to be received during the next three years, 2018, 2019 and 2020 with probabilities of 40%, 50%, and 10%, respectively. The rate of interest on default risk-free investments is 9%. Required: What is the expected present value of Simpson's cash flow? If applicable, round your answers to the nearest whole dollar

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