Question 13 Larkspur, Inc. is using a discounted cash flow model. Scenario 1: Cash flows are fairly certain Scenario 2: Cash flows are uncertain $170/year for 5 years 75% probability that cash flows will be $170 in 5 years Risk-adjusted discount rate is 7% 25% probability that cash flows will be $100 in 5 years Risk-free discount rate is 3% Risk-adjusted discount rate is 7% Risk-free discount rate is 3% Identify which model Larkspur might use to estimate the discounted fair value under each scenario, and calculate the fair value. (For calculation pun table provided. Round final answers to 2 decimal places, .. 5,275.25.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Scenario 1: Larkspur might use model Fair Value $ Scenario 2: Larkspur might use model Fair Value