Question: (Expected Cash Flows and Present Value) Keith Bowie is trying to determine the amount to set aside so that he will have enough money on

(Expected Cash Flows and Present Value) Keith Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 2 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 2 years, by conducting some research online, Keith has developed the following estimates. Engine Overhaul Estimated Cash Outflow Probability Assessment $200 10% 450 30% 600 50% 750 10% How much should Keith Bowie deposit today in an account earning 6%, compounded annually, so that he will have enough money on hand in 2 years to pay for the overhaul? (Round the computation for expected cash flow to 0 decimal places and the final answer to 2 decimal places, e.g. 250.25. Hint: Use tables in text.)

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