Question 25 Skysong, Inc. is using a discounted cash flow model. Scenario 1: Cash flows are fairly certain Scenario 2: Cash flows are uncertain $250/year for 5 years 75% probability that cash flows will be $250 in 5 years Risk-adjusted discount rate is 5% 25% probability that cash flows will be $120 in 5 years Risk-free discount rate is 3% Risk-adjusted discount rate is 5% Risk-free discount rate is 3% Identify which model Skysong might use to estimate the discounted fair value under each scenario, and calculate the fair value. (For calculation 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: 0 1 2 3 Skysong might use model. 5 Fair Value s Z Scenario 2: Skysong might use model Fair Value LINK TO TEXT LINK TO VIDEO