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A decision tree shows a 52.1% probability of $13.0 million in profits and a 47.9% chance of $3.1 million in losses. What is the maximum
A decision tree shows a 52.1% probability of $13.0 million in profits and a 47.9% chance of $3.1 million in losses. What is the maximum you would invest today in this project if the cash flows occur in 5 years from now and the discount rate is 8.5%?
a. $4.75 million
b. $5.64 million
c. $5.29 million
d. $9.12 million
e. $3.52 million
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