Windsor, Inc. is using a discounted cash flow model. Scenario 1: Cash flows are fairly certain Scenario 2: Cash flows are uncertain $190/year for 5 years 75% probability that cash flows will be $190 in 5 years Risk-adjusted discount rate is 7% 25% probability that cash flows will be $70 in 5 years Risk-free discount rate is 4% Risk-adjusted discount rate is 7% Risk-free discount rate is 4%

Identify which model Windsor might use to estimate the discounted fair value under each scenario, and calculate the fair value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25.) Scenario 1:

Windsor might use	expected cash flow /traditional approach model.
Fair Value	$

Scenario 2:

Windsor might use	traditional approach/ expected cash flow model.
Fair Value