Marin Inc. is using a discounted cash flow model.

Scenario 1: Cash flows are fairly certain		Scenario 2: Cash flows are uncertain
$240/year for 5 years		75% probability that cash flows will be $240 in 5 years
Risk-adjusted discount rate is 8%		25% probability that cash flows will be $115 in 5 years
Risk-free discount rate is 2%		Risk-adjusted discount rate is 8%
		Risk-free discount rate is 2%

Identify which model Marin might use to estimate the discounted fair value under each scenario, and calculate the fair value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25.)