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(*Round to the nearest dollar*)

Basic scenario analysis Prime Paints is in the process of evaluating two mutually exclusive additions to its processing capacity. The firm's financial analysts have developed pessimistic, most likely, and optimistic estimates of the annual cash inflows associated with each project. These estimates are shown in the following table. Project A $12,300 Project B $12,300 Initial investment (CF) Outcome Pessimistic Most likely Optimistic Annual cash inflows (CF) $860 $1,590 1,620 1,620 2,480 1,770 a. Determine the range of annual cash inflows for each of the two projects. b. Assume that the firm's cost of capital is 9.1% and that both projects have 18-year lives. Construct a table showing the