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The following is a question with a built in spreadsheet. How should I fill in the yellow spots on the excel spread sheet? Bradford Services

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The following is a question with a built in spreadsheet. How should I fill in the yellow spots on the excel spread sheet?

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Bradford Services Inc. (BS1) is considering a project that has a cost of $10 million and an expected life of 3 years. There is a 30 percent probability of good conditions, in which case the project will provide a cash flow of $9 million at the end of each year for 3 years. There is a 40 percent probability of medium conditions, in which case the annual cash flows will be $4 million, and there is a 30 percent probability of bad conditions and a cash ow of -$l million per year. BS] uses a 12 percent cost of capital to evaluate projects like this. a. Find the project's expected cash ows and NPV. WACC= 11% Condition Probabiligg CF I Prob. Good 30% 39 Medium 40% $4 Bad 30% 31 Expected CF'= Time line of Expected CF 0 l 2 3 -$10

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