Question: Your answer is incorrect. Metrock, Inc. is using a discounted cash flow model, Scenario 1 Cash flows are fairly certain Scenario 2: Cash flows are

Your answer is incorrect. Metrock, Inc. is using a discounted cash flow model, Scenario 1 Cash flows are fairly certain Scenario 2: Cash flows are uncertain $260/year for 5 years 75% probability that cash flows will be $260 in 5 years Risk-adjusted discount rate is 5% 25% probability that cash flows will be $120 in 5 years Risk free discount rate is 2% Risk-adjusted discount rate is 5% Risk free discount rate is 296 Identity which model Metlock 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, e3.5,275.25) Click here to view the factor table PRESENT VALUE OF 1 Click here to view the tactor table PRESENT VALUE OF AN ANNUITY OF Scenario 1: 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: Metlock might use traditional approach model. Fair Value Scenario 2: Metlock might use expected cash flow model Fair Value
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