QUESTION 40 Expected cash flow for product warranty costs: Assume a 2 year warranty period risk free rate of interest is 596 year one present value factor 0.95 year two present value factor 0.9 FOR YEAR ONE Estimated Warranty cost probability $50,000 0.2 $60,000 0.5 570,000 0.3 For year one, the estimated warranty expense is: FOR YEAR ONE Estimated Warranty COSE probability 550.000 0.2 560,000 0.5 $70,000 0.3 For year one, the estimated warranty expense is: a. 558,095 b. 557.950 c $55,000 d. 561,000