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b. What is the certainty-equivalent cash flow in year 1 and year 2? (Do not round intermediate calculations, Round your answers to 2 decimal places.)

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b. What is the certainty-equivalent cash flow in year 1 and year 2? (Do not round intermediate calculations, Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Certainty Equivalent Cash Flow $ 118.34 S 126 25 Year Year 2 c. What is the ratio of the certainty-equivalent cash flows to the expected cash flows in years 1 and 2? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. 1.07 1.14 Year 2

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