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Denway Motors is evaluating two mutually exclusive projects both of which require an initial outlay of 400 000 Each project has an expected life of

Denway Motors is evaluating two mutually exclusive projects both of which require an initial outlay of 400 000 Each project has an expected life of six years The cash flows associated with these projects are uncertain but the management team has been able to determine the probability distribution of cash flows The probability distributions associated with the annual cash flows from each project are given below

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