Expected value analysis: Boulder Creek Industries Boulder Creek Industries is considering an investment in equipment based on the following estimates: Assume Boulder Creek Industries assigns the following probabilities to the estimated annual net cash flow a. Compute the expected value of the annual net cash flows. b. Determine the expected net present value of the equipment, assuming a desired rate of return of 12% and expected annual net cash flows computed in part (a). Use the present value tables (Exhibit 2 and 5) provided in the chapter in determining your answer. Net present value c. Boulder creek wishes to invest in a project. Identify the reason for accepting the project. (a) The net cash inflow is higher and in turn increases the profitability of the business. (b) The net present value and the cash flows are positive. (c) The net present value can be ignored and the decision is based on the net cash inflow. (d) None of the above