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Which investment should be accepted

Problem: Richland Manufacturing Inc. has prepared the following information regarding two investments under consideration. Which investment should be accepted? Please show all calculations, formulas, and details and send it via Word document. Thank you.

COMMON STOCK A COMMON STOCK B
PROBABILITY RETURN PROBABILITY RETURN
.20 -2% .10 4%
.50 18% .30 6%
.30 27% .40 10%
.20 15%

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Finance Basics: Which investment should be accepted

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