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The company s controller has provided the following three cash flow possibilities for the restoration costs: ( 1 ) $ 5 2 0 , 0

The companys controller has provided the following three cash flow possibilities for the restoration costs: (1) $520,000,20% probability; (2) $570,000,35% probability; and (3) $670,000,45% probability. The companys credit-adjusted, risk-free rate of interest is 6%.

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