Question
A cash flow of $500,000 may be received by Cynthia Bennett Company in one year, two years, or three years, with probabilities of 30%, 50%,
A cash flow of $500,000 may be received by Cynthia Bennett Company in one year, two years, or three years, with probabilities of 30%, 50%, and 20%, respectively. The rate of interest on default risk-free investments is 8%. Required: What is the expected present value of Cynthia Bennett' cash flow? Round your answers to the nearest whole dollar. With details please.
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Managerial Accounting Creating Value In A Dynamic Business Environment
Authors: Ronald W Hilton
6th Edition
0071113142, 978-0071113144
