8 (25 points): 1. Paige's Support Services (PSS) operates in the flower industry that sells unique, exotic, and desirable flowers that are shipped from Eastern Europe. The cash flows from operations are very volatile depending on the political and environmental states. PPS operates under ideal conditions of uncertainty. On August 1, 2022, the beginning of its first year in business, PPS acquired equipment for its operations. The equipment will last two years, at which time its salvage value will be zero. The company finances the equipment using a $50,00 bank loan at 10 percent interest, with the balance financed by issuing common shares. PPS's annual net cash flows will be $100,000 if the political and environmental states are good and $25,000 if the political and environmental states are bad. Assume that cash flows are received at year- end. In each year, the objective probability that political and environmental states are good is .25 and .75 for the bad political and environmental states. The inte