A U.S. company performs a quantitative analysis of the suffiiency of a newly- formed special purpose entity's equity to absorb expected losses. The SPE was formed with $11,025 in equity and $99,225 in debt, for a total fair value of $110,250. Assume the SPE's expected net cash inflows all occur at the end of one year. Expected cash flows and probabilities are: Expected net cash flow Probability $156,000 58,500 35,100 0.60 0.30 0.10 The U.S. company uses a risk-adjusted discount rate of 4 percent to determine the present value of cash flows. The SPE's expected losses are O$7,650 O$16,200 O$15,900 O$23,850