Multiple Choice
You can invest $100,000 into either project A or B.You estimate that A succeeds with probability 0.5 in which case it doubles in value.If it fails,the scrap value is worth $50,000.Project B succeeds with probability 0.8,has value $150,000 if it succeeds and value of $30,000 if not.
A) You should invest in project A
B) You should invest in project B
C) You should not invest in either
D) You cannot tell from the information presented
Correct Answer:
Verified
Correct Answer:
Verified
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