A Decision Tree Shows a 30 Percent Probability of $2

Multiple Choice

A decision tree shows a 30 percent probability of $2 million in returns and a 70 percent chance of $1 million in returns.What is the maximum you would invest today in this project if the cash in-flow occurs one year in the future and the discount rate is 10 percent? (Use the values in dollar)

A) $818,182
B) $1,181,818
C) $1,300,000
D) $1,363,636