A. Project 1 has five bidders with equal chances of winning. Its value is $400,000, but will cost $20,000 to bid. What is its EMV?

a. $80,000

b. $380,000

c. $64,000

d. Insufficient data

B. Project 2 has 100 bidders with equal chances of winning. Its value is $26,000,000, but will cost $200,000 to bid. What is its EMV?

a. $2,000

b. $62,000

c. $25,800,000

d. Insufficient data

C. If he can only bid on one project, a risk-seeking manager will bid on which one?

a. Project 1

b. Project 2

c. Insufficient data