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10. There is a business opportunity for Benjamin with $150,000 that he has. He can invest on Project XX that, if it is successful, could
10. There is a business opportunity for Benjamin with $150,000 that he has. He can invest on Project XX that, if it is successful, could bring him $75,000 profit after two years(he will end up $225,000). He can invest the money in a specific bank, which considered to be reliable, with 4% annual interest rate. If Project XX is not successful, then Benjamin will incur $25,000 loss (he will end up with $125,000). The probability of success for Project XX is 80% (so the possibility of failure is 20%) Expected Monetary Outcome and its Likelihood Value (EMV) Alternatives (probability)
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