Milliken Company paid $2.2 million to purchase stock in another company, $1.0 million to repurchase treasury shares, $0.5 million to buy short-term investments, sold used equipment for $0.8 million when its book value was $0.6 million, and purchased new equipment for $3.4 million. What was the net cash flow from investing activities? $6.3 million net cash outflow. $5.3 million net cash outflow. $5.1 million net cash outflow. $4.8 million net cash outflow.

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value