uppruun (b) A firm has an opportunity to invest in a machine that will last two years with initial cost Rs.92000. The firm has determined that its after-tax cash inflow (ATCI) distributions are not independent and it has the following estimated after tax cash inflow pattern: Year 1 After tax cash inflow (Rs.) 62000 Probability 0.36 84000 0.48 90000 0.16 Year 2 If after tax cash inflow=62000 If after tax cash inflow-84000 If after tax cash inflow-90000 ATCIF Prob. ATCIF Prob. ATCIF Prob. 67000 0.32 82000 0.35 88000 0.33 72000 0.47 91000 0.42 92000 0.42 91000 0.21 98000 0.23 99000 0.25 Should the investment be accepted, if the expected cost of capital is 10%? (7.7)