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For an investment of $ 1 8 6 , 0 0 0 , you start a firm named BriteWhite, a dental products company, that will

For an investment of $186,000, you start a firm named BriteWhite, a dental products company, that will either produce Free Cash Flows of either $308,000(high state) or $200,000(low state) at t=1, both with equal probability, and nothing beyond that. The WACC for the firm is 9% and the borrowing rate is 3%.

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