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When calculating the expected value of a PV of cash inflows why we mention the same probability with the same cash inflow thrice?
For example there is probability of $9000 at a probability 0.25.When calculating the expected value of a PV of cash inflows i saw 9000 and 0.25 thrice in the column. why?You will have to say which question you are referring to (assuming that it is either a past exam question, or a question in the current edition of the BPP Revision Kit).
We multiply the cash flows by the probabilities, and so without seeing the question I cannot tell you whey you should see the figures three times!!
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