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The Caribou Pipeline Company projects a pattern of inflows from the investment shown in the following table. The Inflows are spread over time to reflect

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The Caribou Pipeline Company projects a pattern of inflows from the investment shown in the following table. The Inflows are spread over time to reflect delayed benefits. Each year is independent of the others. Year 1 Year 5 Year 10 Cash Inflow Probability Cash Inflo Probability Cash Inflow Probability 55 0.10 40 0.35 30 0.30 80 0.20 80 0.30 80 0.40 105 0.40 120 0.35 130 0.30 The expected value for all three years is $80. c. Assuming a 8 percent and 16 percent discount rate complete the table for present value factors (Round the answers to 3 decimal places) Year PVIE #Percent VI 16 percent Difference 0.926 3 3.162 20 d. This part of the question is not part of your Connect assignment e-1. Assume the initial investment is $140 What is the net present value of the expected values of $80 for the investment at a 16 percent discount rate/Round "PV Factor" to 3 decimal places. Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 1 decimal place.) Net present value e-2. Should the investment be accepted? $ Yes

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