A Decision Tree Shows a 30 Percent Probability of $2

question 59

Multiple Choice

A decision tree shows a 30 percent probability of $2 million in returns and a 70 percent chance of $1 million in returns.What is the maximum you would invest today in this project if the cash in-flow occurs one year in the future and the discount rate is 10 percent? (Use the values in dollar)

• A)$818,182
• B)$1,181,818
• C)$1,300,000
• D)$1,363,636

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Definitions:

Microorganisms

Tiny, often microscopic, life forms, including bacteria, viruses, fungi, and protozoa, that can be found in almost every environment on Earth.

Gut

The gut, or gastrointestinal tract, is the system of organs responsible for digestion and absorption of nutrients, as well as expulsion of waste.

Language Control

The cognitive mechanism that allows bilingual or multilingual speakers to switch between languages efficiently and prevent unintended language interference.

Hemispheres

The two halves of the brain, the right and left hemispheres, each responsible for different functions and processes.