IBM IncHas a Project That Costs $90,000

question 35

Multiple Choice

IBM Inc.has a project that costs $90,000.It has a 50% chance of paying off $200,000 and a 50% chance of paying off $0.What is the expected payoff and the expected profit or loss from the new project?

• A)The expected payoff is $100,000 and the expected profit is $10,000.
• B)The expected payoff is $10,000 and the expected profit is $10,000.
• C)The expected payoff is $100,000 and the expected loss is $100,000.
• D)The expected payoff is $100,000 and the expected loss is $10,000.

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Definitions:

Slave Labor

Work done under force without proper remuneration, often under extremely harsh conditions, primarily referred to in the context of African slaves in the Americas during the colonial and antebellum periods.

Eli Whitney

Known for inventing the cotton gin, a pivotal invention in the history of agriculture and the economy of the United States.

Slaveholders

Individuals or entities that owned slaves.

Owned

Often colloquially used to mean dominantly defeated or embarrassed, typically in a competitive situation or argument.