Multiple Choice
You can invest $100,000 into either project A or B.You estimate that A would succeed with a probability of 0.5 in which case it doubles in value.If it fails,its scrap value is $50,000.Project B would succeed with probability 0.8,in which case it would have a value of $150,000.If it fails,project B's scrap value is $30,000.Which project should you invest in?
A) Project A
B) Project B
C) Neither of the projects
D) You cannot tell from the information presented
Correct Answer:
Verified
Correct Answer:
Verified
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