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ABC Corporation is considering launching a new project that entails an initial investment and generates expected cash inflows over a four - year period. This
ABC Corporation is considering launching a new project that entails an initial investment and generates expected cash inflows over a fouryear period. This project, while promising, carries inherent risks that need careful analysis to ensure its viability and alignment with the corporation's financial goals. a Discuss how cash flow estimation differs from profit estimation and the impact of this difference on project evaluation. marksb How do systematic and unsystematic risks affect the decisionmaking process in financial management? Provide examples of each type of risk. marksc The forecasted revenue is $ for Year $ for Year $ for Year and $ for Year Operating costs are expected to be of the cash inflows, and the tax rate is Calculate the net cash flows for each year of the project's life. marksd ABC Corporation's financial team has identified different probabilities for the Year cash inflow: a chance of being $ a chance of being $ and a chance of being $ Calculate the expected cash inflow for Year and its standard deviation to evaluate the project's risk profile. marks
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