An entity is the defendant in a patent infringement lawsuit. The entity's lawyers believe there is a seas chance that the court will dismiss the case and the entity will incur no outflow of economic benets. However, if the court rules in favor of the claimant, the lawyers believe that there is a 2055 chance that the entity will he required to pay damages of P800300 {the amount sought by the claimant} and an EDEE chance that the entity will he required to pay damages of MDDLDD {the amount that was recently awarded by the same judge in a similar case}. |Either outcomes are unlikely. The court is expected to ruie in late December 2022. There is no indication that the claimant will settle out of court. A t. risk adjustment factor to the probabilityweighted expected cash flows is considered appropriate to reflect the uncertainties in the cash flow estimates An appropriate disoount rate is 10% per year