Sketch a proudly unst DULO ( 5. The Blazingame Corporation is considering a three-year project that has an initial cash outlay (C) of $175,000 and three cash inflows that are defined by the following independent probability distributions. All dollar figures are in thousands. Blazingame's cost of capital is 10%. C, C C , Probability $50 $ 40 $75 25 60 80 80 .50 70 120 85 .25 a. Estimate the project's most likely NPV using a point estimate of each cash flow. What is its probability? b. What are the best and worst possible NPVs? What are their probabilities? c. Choose a few outcomes at random, calculate their NPVs and the associated probabilities, and sketch the probability distribution of the project's NPV. Wichis obtained by [Hint: The project has 27 possible cash flow patterns (3 X 3 X 3), each of which is ou selecting one cash flow from each column and combining with the initial outlay. The py of any pattern is the product of the probabilities of its three uncertain cash flows. For particular pattern might be as follows: Co C C , C, C $(175) $50 $120 $80 Probability 10 .25 25 50 The probability of this pattern would be ain cash flows. For example, a .25 X.25 X.50 = .03125 6. Sanville Quarries is consid. Sketch a proudly unst DULO ( 5. The Blazingame Corporation is considering a three-year project that has an initial cash outlay (C) of $175,000 and three cash inflows that are defined by the following independent probability distributions. All dollar figures are in thousands. Blazingame's cost of capital is 10%. C, C C , Probability $50 $ 40 $75 25 60 80 80 .50 70 120 85 .25 a. Estimate the project's most likely NPV using a point estimate of each cash flow. What is its probability? b. What are the best and worst possible NPVs? What are their probabilities? c. Choose a few outcomes at random, calculate their NPVs and the associated probabilities, and sketch the probability distribution of the project's NPV. Wichis obtained by [Hint: The project has 27 possible cash flow patterns (3 X 3 X 3), each of which is ou selecting one cash flow from each column and combining with the initial outlay. The py of any pattern is the product of the probabilities of its three uncertain cash flows. For particular pattern might be as follows: Co C C , C, C $(175) $50 $120 $80 Probability 10 .25 25 50 The probability of this pattern would be ain cash flows. For example, a .25 X.25 X.50 = .03125 6. Sanville Quarries is consid