# Question

A risky $30,000 investment is expected to generate the following cash flows:

The probability of receiving each cash inflow is 90, 80, and 70 percent, respectively. If the firm’s cost of capital is 12 percent, should the investment be made?

The probability of receiving each cash inflow is 90, 80, and 70 percent, respectively. If the firm’s cost of capital is 12 percent, should the investment be made?

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