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2) An oil exploration company has $150 MM available in cash. It can invest the money in a bank at 10% yielding a return of

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2) An oil exploration company has $150 MM available in cash. It can invest the money in a bank at 10% yielding a return of $241.6 MM over five years. Alternatively it can invest in an oil exploration project, of which there are currently two available. If it invests in Project A there is with a probability of success representative of your base scenario yielding $300 MM, or leading to a loss of $150 MM.(over the five year period) If it invests in Project B there is with a probability of success representative of your base scenario yielding $450 million or leading to a loss of $200 MM. (over the five year period) What percentage should the bank offer to make you change your decision

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