What is the expected cash flow and net present value

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Question: 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 10%. What is its expected "Cash Flow and Net Present Value?"

Cash Flow

Probability

$60,000

.10

$85,000

.20

$110,000

.45

$130,000

.25

Reference no: EM131962692

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