Teal Mountain Enterprises is using a discounted cash flow model. Identify which model Teal Mountain might use to estimate the discounted fair value under each scenario, and calculate the fair value using the present value tables:

Scenario $1$: Cash flows are fairly certain

$$140/$year for $5$ years

Risk$-$adjusted discount rate is $8\%$

Risk$-$free discount rate is $2\%$

Scenario $2$: Cash flows are uncertain

$75\%$ probability that cash flows will be $$140$ in $5$ years

$25\%$ probability that cash flows will be $$120$ in $5$ years

Risk$-$adjusted discount rate is $8\%$

Risk$-$free discount rate is $2\%$