13. Suppose you are evaluating a project to establish a new car factory. Having analyzed several scenarios, you come up with three outcomes. First, the
13. Suppose you are evaluating a project to establish a new car factory. Having analyzed several scenarios, you come up with three outcomes. First, the worst-case scenario (probability of 25%) the expected cashflow is $50 billion. The cashflow for the base-case scenario (probability of 50%) is $100 billion. Finally, the best-case scenario (probability of 25), would result in a cashflow of $200 billion. What is the highest amount you would be prepared to pay to establish the factory? 1. $50 billion 2. 0 $100 billion 3.0 $112.5 billion 4. O $116.7 billion 5. O $200 billion
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