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Windsor Enterprises is using a discounted cash flow model. Identify which model Windsor might use to estimate the discounted fair value under each scenario, and

Windsor Enterprises is using a discounted cash flow model. Identify which model Windsor might use to estimate the discounted fair value under each scenario, and calculate the fair value using the present value tables: A Scenario 1: Cash flows are fairly certain $260/year for 5 years Risk-adjusted discount rate is 6% Risk-free discount rate is 2% Scenario 1: (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25.) Windsor might use Scenario 2: Cash flows are uncertain Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Fair value 75% probability that cash flows will be $260 in 5 years 25% probability that cash flows will be $115 in 5 years Risk-adjusted discount rate is 6% $ Risk-free discount rate is 2% V model
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Windsor Enterprises is using a discounted cash fiow model/dentify which model Windsor nicht use to estimate the discounted fair value under each scenario, and calculate the far value ining the present value tables: (For calculation puposes, use 5 decimal plocri os diphoyed in the factor toble provided found fingt anwwes to 2 decimatplares, es. 5.27525 J Click here toview the tactor table PRESENTVALUE OF 1 iC ck here to Vew the foctor table gatEENT VALUE GR ANANNUTY OFI Scentario 1 Winatros inight use model. (For calcilatian puposez, tee 5 decimal plocirs as diyltymd in the foctur fotie provided, Round final enewers bo 2 decimal ploces, es.5.275 25 ) Click here to view the factor table pRESENT VALUECF 1. Click here to View the factor table PAESENT VALUECA AN ANNUITYOF 1 Scenario 1. Windsor mikht une Irodel Fairvahe 5 Scensrio 2 Whatior migtike Far viluo 15

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