A firm is assessing a projects BTCF for year 3. It has developed three estimates for BTCF in todays dollars, the likely amount, a high amount, and a low amount, each with an associated probability. Annual inflation could be low at 3% or high at 8%. The firm estimates low inflation to have a 80% likelihood. What is the expected BTCF for year 3 of the project in actual dollars?

Question 1 10 pts A firm is assessing a project's BTCF for year 3. It has developed three estimates for BTCF in today's dollars, the likely amount, a high amount and a low amount, each with an associated probability. Annual inflation could be low at 3% or high at 8%. The firm estimates low inflation to have a 80% likelihood. BTCF (today's $) 0.3 Low Most Likely High Probability 150,000 180,000 200,000 0.6 0.1 What is the expected BTCF for year 3 of the project in actual dollars? $179.920 $187.117 $194,819 $202.843