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Lucky Enterprises is using a discounted cash flow model. Identify which model Lucky might use to estimate the discounted fair value under each scenario, and

Lucky Enterprises is using a discounted cash flow model. Identify which model Lucky might use to estimate the discounted fair value under each scenario, and calculate the fair value using the present value tables:Scenario 1: Cash flows are fairly certainScenario 2: Cash flows are uncertain$100/year for 5 years75% probability that cash flows will be $100 in 5 yearsRisk-adjusted discount rate is 6%Risk-free discount rate is 3%25% probability that cash flows will be $75 in 5 yearsRisk-adjusted discount rate is 6%Risk-free discount rate is 3%

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