A Risk-Averse Manager Is Considering a Project That Will Cost

question 19

Essay

A risk-averse manager is considering a project that will cost $100. There is a 10 percent chance the project will generate revenues of $100, an 80 percent chance it will yield revenues of $50, and a 10 percent chance it will yield revenues of $500. Should the manager adopt the project? Explain.

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Definitions:

Protect

To safeguard or defend from harm, injury, or damage, through preventive measures or responsive actions.

Temperament

An individual's natural disposition that influences their behavior and emotional responses, often considered to be innate rather than learned.

Attachment

The emotional bond that forms between individuals, such as between a child and caregiver, influencing personal development and behavior.

Cognition

Learning and understanding acquired through the methods of thinking, experiencing, and sensing.