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Calculate the expected value of the cashflows of the following project. State of the Economy Probability Cashflow Deep Recission .05 -1000 Mild Recission .25 2000

Calculate the expected value of the cashflows of the following project.

State of the Economy

Probability

Cashflow

Deep Recission

.05

-1000

Mild Recission

.25

2000

Normal

.40

5000

Minor Boom

.25

8000

Major Boom

.05

11000

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