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Use the following information to answer the question. Probability Cash Flow 0.32 $ 60,000 Land 0.50 80,000 0.18 100,000 The risk-free rate is 6%. Question:

Use the following information to answer the question.

Probability Cash Flow

0.32 $ 60,000

Land 0.50 80,000

0.18 100,000

The risk-free rate is 6%.

Question:

What is the expected value of this land investment?

a. 77,200

b. 77,300

c. 77,600

a. 77,880

b. 77,900

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