A company is considering an investment project that generates a cash flow of $1,700,000 next year if the economy is favorable but generates only $450,000 if the economy is unfavorable. The probability of favorable economy is 60% and of unfavorable economy is 40%. The project will last only one year and be closed after that. The cost of investment is $1,000,000 and the company plans to finance the project with $400,000 of equity and $600,000 of debt. Assuming the discount rates of both equity and debt are 0%. What is the expected cash flow to the companys shareholders if it invests in the project $1,100,000 $660,000 $580,000 $450,000 $0 QUESTION 10 A company has total sales of $658,000, costs are $446,000, and depreciation is $53,000. The tax rate is 25 percent. The interest expense is $27,000. What is the operating cash flow? $196,000 $187,000 $179,000 $164,000 $153,000