Calculate the expected cash flow to use to calculate the npv

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Cooper Construction is considering purchasing a new, technologically advanced equipment. The equipment will cost $640,000. The equipment is expected to generate additional annual cash inflows with the following probabilities for the next ten years. Its WACC is 11%. What is its expected "Cash Flow and Net Present Value?" Hint: Use the following table to calculate the expected cash flow to use to calculate the NPV.

Cash Flow Probability

$60,000 .10

$85,000 .20

$110,000 .45

$130,000 .25

Select one:

a. Expected Cash Flow of $105,000 and Net Present Value of $5,179.55

b. Expected Cash Flow of $115,000 and Net Present Value of $17,545.77

c. Expected Cash Flow of $105,000 and Net Present Value of -$21,630.64

d. None of the above.

Reference no: EM132515560

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