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Flextire Manufacturing is considering two mutually exclusive proposals. Each will cost $80,000 and will last 6 years. Cash flows and estimated probabilities are presented below.

Flextire Manufacturing is considering two mutually exclusive proposals. Each will cost $80,000 and will last 6 years. Cash flows and estimated probabilities are presented below. Based on a MARR of 10%, Calculate the risk associated with Proposal A.
Proposal A
Benefits per year Probability
$18,000 0.25
20,000 0.6
23,000 0.15

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