uuestion Help (Related to Checkpoint 13.1) (Forecasting cash flows using the expected value) Koch Transportation is contemplating the acquisition of LH Transport a competing trucking firm. Koch's CFO estimates that during the next year LH Transports cash flows from the acquisition will vary depending on the state of the local economy , a. Calculate the expected cash flow for next year using the estimates provided above. b. Assume the probability of a recession increases to 34 percent, the normal scenario probability remains at 61 percent, and the expansion probability drops to only percent. What is your estimate of the expected cash flow for next year under these circumstances? c. Your analysis of the acquisition suggests that for the investment to have at least a zero NPV it must produce an annual expected cash flow of $91.000 per year o the next five years. Assuming that the cash flow you estimated in part a is the expected cash flow for Years one through five, what would you like to know about the project cash flows to make you more comfortable with the idea that you can indeed generate the requisite 591,000 per year cash flow? (No computations required) a. The expected cash flow for the new business is 5 (Roup Data Table Probability Cash flow Scenario : Recession 22% S(48,000) Scenario it: Normal 61% $155.000 Scenario ill: Expanding 17% 5253,000 Enter your answer in the answer box and then click Check parts remaining Print Done