A project with a 3-year life has the following probability distributions for possible end of year cash flows in each of the next three years:

Year 1		Year 2		Year 3
Prob	Cash Flow	Prob	Cash Flow	Prob	Cash Flow
0.30	$300	0.15	$100	0.25	$200
0.40	500	0.35	200	0.75	800
0.30	700	0.35	600
		0.15	900

Using an interest rate of 8 percent, find the expected present value of these uncertain cash flows. (Hint: Find the expected cash flow in each year, then evaluate those cash flows.)

Select one:

a.

$1,204.95

b.

$835.42

c.

$1,519.21

d.

$1,580.00

e.

$1,347.61