A Decision Tree Indicates a 30% Chance of Making a $250,000

Multiple Choice

A decision tree indicates a 30% chance of making a $250,000 profit and a 70% chance of sustaining a $140,000 loss. Given this, the project should be:

A) accepted because the amount of potential profit exceeds the amount of potential loss.
B) rejected because there is more than a 50% chance of loss.
C) accepted because the expected value is positive before discounting.
D) rejected because the expected value is negative before discounting.