Expected profit from the new project
Problem:
You have a project that costs $800,000. It has a 1/3 chance of paying off $3,000,000 and a 2/3 chance of paying off $0.
Required:
Question: What is the expected profit from the new project?
Note: Show supporting computations in good form.
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Question: What is the expected profit from the new project? Note: Show supporting computations in good form.
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