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7,200 8,400 S(1,000) 3,000 5,000 20% 10% 80% 10% E6-21 (LO5) (Expected Cash Flows and Present Value) Keith Bowie is trying to determine the amount
7,200 8,400 S(1,000) 3,000 5,000 20% 10% 80% 10% E6-21 (LO5) (Expected Cash Flows and Present Value) Keith Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 2 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 2 years, by conducting some research online, Keith has developed the following estimates. Engine Overhaul Estimated Cash Outflow Probability Assessment 109s 30% 50% 10% $200 600 750
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