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a 1. You have to pay $10,000 today for a full report on the potential earnings from your new Dunkin franchise location. If you decide
a 1. You have to pay $10,000 today for a full report on the potential earnings from your new Dunkin franchise location. If you decide to open it, you have to pay $150,000 today. In your first year, there's a 60% chance that you'll earn $50,000 and a 40% chance that you'll do great with marketing and earn $100,000. Your second year, you're guaranteed to earn $70,000. And in the third year, depending on the Boston Red Sox winning the Super Bowl, you'll earn $120,000 if they win (20% chance) and $50,000 if they lose (80% chance). Should you take the project if interest is 7%
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