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What is the expected present value

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Question - A cash flow of $500,000 may be received by Cynthia Bennett Company in one year, two years, or three years, with probabilities of 30%, 60%, and 20%, respectively. The rate of interest on default risk-free investments is 8%.

Required - What is the expected present value of Cynthia Bennett' cash flow? Round your answers to the nearest whole dollar. Be sure to use the time value of money tables using 5 decimal places, not the formula and round your answers to the nearest whole dollar.

Reference no: EM132964695

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