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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
- John approached you with a business proposition to invest in a project.The Annual Cash Flows (CFt) are uncertain. However, the following probability distribution provides you with expectations:
Probable
Cash Flow (CF)
Probability P(CF)
$80,000
.15
$140,000
.55
$180,000
.30
What is the expected Annual Cash Flow from this project?
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