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Merrimack Corporation is considering an investment project that generates a cash flow of $24,000 next year if the economy is favorable but generates only $8,000

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Merrimack Corporation is considering an investment project that generates a cash flow of $24,000 next year if the economy is favorable but generates only $8,000 if the economy is unfavorable. The probability of favorable economy is 55s and of unfavorable economy is 45%. The project wil last only one year and be closed after that. The cost of investinent is 516,000 and the company plans to finance the project with $5.000 of equity and $11,000 of debt. Assuming the discount rates of both equity and debt are OK. What is the expected cash flow to Mernimack Corporation's creditors if the company invests in the project? $11,000$0.650$6,000$7.450 50

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