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In: AccountingAssume that Jimmy's Submarine Ltd. has several minor lawsuitsoutstanding. To determine the amount of liability...Assume that Jimmy's Submarine Ltd. has several minor lawsuitsoutstanding. To determine the amount of liability to recognize onthe statement of financial position, Jimmy decides to use expectedcash flow techniques. Based on dicussions with their lawyers, Jimmyhas developed the following cash flow estimates, and relatedprobabilities:YearCash Flow EstimateProbability Assignment2017$2,30030%$4,50045%$8,20025%2018$3,20020%$5,40050%$7,10030%Required: Based on these estimates, andassuming a risk free rate of 5%, what is the present value ofexpected cash flows which picnic should record on their statementof financial position for 2017?