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27 )Buchanan Corp. forecasts the following payoffs from a project: Outcome Probability of Outcome Assumptions $ 800 15 % pessimistic 3,400 45 % moderately successful
27 )Buchanan Corp. forecasts the following payoffs from a project:
| Outcome | Probability of Outcome | Assumptions | ||||
| $ | 800 | 15 | % | pessimistic | ||
| 3,400 | 45 | % | moderately successful | |||
| 5,700 | 40 | % | optimistic | |||
What is the expected value of the outcomes?
-
$3,930
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$3,300
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$4,180
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$3,400
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, William J. Kretlow
11th Edition
0324653506, 978-0324653502
