) John approached you with a business proposition to invest in a project. The Annual Cash Flows (CF_t) are uncertain. However, the following probability distribution provides you with expectations:

Probable Cash Flow (CF)	Probability P(CF)
$80,000	.25
$120,000	.65
$150,000	.10

1. a. What is the expected Annual Cash Flow from this project?
2. b. If the cash flows are expected for three years and the current rate of return on investments is 9.5%, what is the expected Present Value of the projected cash flows?
3. c. Would you agree to invest $275,000 in this project? Explain!!