Problem 15.7

I've included 15.6 for reference

Exhibit 15.8 for reference

15.7 Refer to the table developed in Problem 15.6 for University Health System. Assume the Managed Care Division is evaluating a project with the net cash flows and probabilities shown in the table below. Assume the Managed Care Division has judged the project to have lower-than-average risk. Is the project financially attractive? Year Prob 0.3 Prob 0.4 Prob 0.3 0 ($100,000) ($100,000) ($100,000) 30,000 40,000 20,000 30,000 40,000 20,000 30,000 40,000 20,000 4 20,000 30,000 40,000