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Cumnock Corporation (CC) is estimating cash flows from a new product for the next year. The cash flow generated by the new product sales is

Cumnock Corporation (CC) is estimating cash flows from a new product for the next year. The cash flow generated by the new product sales is uncertain. It has estimated the following probability distribution of after-tax cash flows from these sales for the next year: Possible State Probability After-tax Cash Flow 1 .2 $9,000 2 .3 $12,000 3 .5 $15,000 Use the above information to answer the following questions. The tax rate is 35% What is the standard deviation of the after-tax cash flows? A. 1,121 B. 4,217 C. 995 D. 2,343 E. 3,549 F. 1,621

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