Question

What is next year's expected cash flow if there is a 50/50 probability that it will be either $10 million or $60 million?

Answer 1

The next year's expected cash flow if there is a 50/50 probability that it will be either $10 million or $60 million is $35 million.

What is probability?

Probability refers to possibilities. This branch of mathematics deals with the occurrence of a random event. The value's range is 0 to 1. The probability formula states that the ratio of positive outcomes to all other outcomes determines how likely an event is to occur.

Sum of outcomes= 410+$60=$70 million

Number of outcomes=2

As the probability is 50/50, the next year’s expected cash flow will be

10+60/(2)

=70/2

=35 million dollars.

To learn more about probability, visit: https://brainly.com/question/9793303

#SPJ4