Question 25 Marin Inc. is using a discounted cash flow model. Scenario 1: Cash flows are fairly certain $110/year for 5 years Risk-adjusted discount rate is 7% Risk-free discount rate is 4% Scenario 2: Cash flows are uncertain 75% probability that cash flows will be $110 in 5 years 25% probability that cash flows will be $110 in 5 years Risk-adjusted discount rate is 7% Risk-free discount rate is 4% 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.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Scenario 1: Marin might use model. Rectangular Snig Fair Value $ Scenario 2: Marin might use model. Fair Value $ Question 25 Marin Inc. is using a discounted cash flow model. Scenario 1: Cash flows are fairly certain $110/year for 5 years Risk-adjusted discount rate is 7% Risk-free discount rate is 4% Scenario 2: Cash flows are uncertain 75% probability that cash flows will be $110 in 5 years 25% probability that cash flows will be $110 in 5 years Risk-adjusted discount rate is 7% Risk-free discount rate is 4% 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.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Scenario 1: Marin might use model. Rectangular Snig Fair Value $ Scenario 2: Marin might use model. Fair Value $