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Consider the following cash flows: Year Cash flow 0 -$29, 400 1 14, 300 2 14, 600 3 11, 000 Requirement 1: what is the

Consider the following cash flows:

Year Cash flow

0 -$29, 400

1 14, 300

2 14, 600

3 11, 000

Requirement 1: what is the probability index for the above set of cash flows if the relevant discount rate is 8 percent?

Requirement 2: what is the probability index if the discount rate is 13 percent?

Requirement 3: what is the probability index if the discount rate is 20 percent?

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