Economics question, show steps and be clear solve in 30 minutes for thumbs up rating Assume...

Question

Question

Economics question, show steps and be clear

solve in 30 minutes for thumbs up rating

business economics

Answer 1

Answer #1

Project's expected value = Expected profit - cost

Project's expected value = (60%*0 + 40%*2500000) - 500000

Project's expected value = 500000

So, expected value of the project will be 500000.

Outcome B and C are same. If there is a difference in probability, then post it via comment for modified answer.

Answer 2

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