Kingbird Enterprises is using a discounted cash flow model. Identify which model Kingbird might use to estimate the discounted

fair value under each scenario, and calculate the fair value using the present value tables:

Scenario $1$: Cash flows are fairly certain

$$150/$year for $5$ years

Risk$-$adjusted discount rate is $5\%$

Risk$-$free discount rate is $2\%$

Scenario $2$: Cash flows are uncertain

$75\%$ probability that cash flows will be $$150$ in $5$ years

$25\%$ probability that cash flows will be $$100$ in $5$ years

Risk$-$adjusted discountrate is $5\%$

Risk$-$free discount rate is $2\%$