Step-by-step explanation:
3( x +1) = 5 (x - 2) + 7
3x + 3 = 5x - 10 + 7
5x - 3x = 3 + 10 - 7
2x = 13 - 7
2x = 6
Therefore x = 3
From the question we are told that:

Year 1= \$110
Year 2 = \$121
Risk free rate is 
Risk premium 

a)
Generally, the equation for Equity Return is mathematically given by



Therefore Present Value (PV) is

b)
Generally, the equation for certainty-equivalent cash flow is mathematically given by

Therefore
For Certainty-equivalent cash flow Year One


For Certainty-equivalent cash flow Year Two


c)
The Ratio of the certainty-equivalent cash flows to the expected cash flows in years 1 and 2 could be written as

or

Answer:
Maybe is 2y
Step-by-step explanation:
First add 2 2/4 and 1 3/4
= 4 1/4
Then subtract 4 1/4 from 12
= 7 3/4