Use Excel to calculate the expected present value of the following cash flows using a 5% discount rate? Be prepared to explain how you calculated your answer.

Year 1 Cash Flow Estimates $ 1,500 $ 2,000 $ 2,500 Probabiltiy of Estimate 10% 50% 40% Total Year 2 $ $ $ 3,300 3,600 4,000 15% 40% 45%