Multiple Choice
A decision tree shows a 30% probability of $2 million in returns and a 70% chance of $1 million in returns. What is the maximum you would invest today in this project if the cash inflow occurs one year in the future and the discount rate is 10%?
A) $818,181.82
B) $1,181,818.18
C) $1,300,000.00
D) $1,430,000.00
Correct Answer:
Verified
Correct Answer:
Verified
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