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Aquila company is considering an investment project that generate a cash flow of 1 6 0 , 0 0 0 next year if the economy

Aquila company is considering an investment project that generate a cash flow of 160,000 next year if the economy is favorable but generates only $75,000 if the economy is unfavorable. The probability of favorable economy is 60% and of unfavorable economy is 40%. The project will last only one year and be closed after that . The cost of investment is $120,000 and equity and debt are 0%. What is the expected cash flow to Aquila company sharholder if the company invests in the project?

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