Business
Business, 08.01.2020 03:31, yassinesayedahmad1

The owner of grandma's applesauce is planning to retire after the coming year. she has to repay a loan of $50,000 plus 8 percent interest and must rely on cash flow from operations to do so. cash flow from operations is uncertain; there is a 70% probability it will equal $65,000, and a 30% probability it will equal $45,000.
assuming a tax rate of 0%, what is the owner's expected cash flow after debt service?

a. $9,000 b. $5,000 c. $11,000 d. $7,700

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