Project A is a 3-year project that will cost $50,000 today. You have estimated the following probability distribution for the future cash flows from the project:
-Refer to the information above. Project A's most likely future annual cash flow is
A)$30,000
B)$26,000
C)$29,300
D)$30,333

Question

Project A is a 3-year project that will cost $50,000 today. You have estimated the following probability distribution for the future cash flows from the project: 
-Refer to the information above. Project A's most likely future annual cash flow is
A)$30,000 
B)$26,000 
C)$29,300 
D)$30,333

Quizplus · Accepted Answer

Project A's most likely future annual cash flow is $30,000. This is because the most likely outcome is that the project will generate $30,000 in cash flow each year.

Project a Is a 3-Year Project That Will Cost $50,000