With this data, obtain the weight value of each situation and weighting factor.

determine which of the projects is most favorable from a financial point of view, considering the expected cash flows, investment costs and associated risks.

• Identify relevant decision-making criteria, such as expected cash flows and associated risks.
• Use the weighting technique to assign weights to each criterion, considering their relative importance.
• Calculate the weighted scores for each project, multiplying the expected cash flows by the corresponding weights and adding them.
• Apply probability theory to calculate the expected values of cash flows, considering the probabilities of success for each project.
• Evaluate the risks associated with each project, considering the probability of success and possible losses in case of failure.
• Perform a comparative analysis of the weighted scores, expected values, and associated risks to determine which project is most financially favorable.
• Present your decision, justifying your choice based on the results obtained through the application of mathematical methods.
• Provides additional recommendations, considering other relevant factors that may influence the investment decision.

Weighing	Investment cost	Cash Flow	Probability of success	Weight value	Weighting factor
Project A	$ 100,000.00		70%
At 1		$ 30.00
At 2		$ 50.00
At 3		$ 60.00
Weighing	Investment cost	Cash Flow	Probability of success	Weight value	Weighting factor
Project B	$ 150,000.00		90%
At 1		$ 40.00
At 2		$ 45.00
At 3		$ 55.00

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To determine which project is most favorable from a financial point of view we need to perform a multicriteria decisionmaking analysis We will use the weighting technique to assign weights to each cri... View the full answer