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If the company builds a small plant, experienced an initial high demand in the first two years and decides not to expand the plant, the company will generate cash flow: $300,000/yr with high demand (due to more competition), 60% probability, and 40% probability of low demand with $400,000/yr. What’s the total projected net cash flow for the remaining 8 years with no change in plant size after experience high demand in the first two years (2.D)?

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