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A small business needs a $240,000 loan to invest in a risky project.The project will succeed with prob. 0.89, and generate revenue $360,000, otherwise it
A small business needs a $240,000 loan to invest in a risky project.The project will succeed with prob. 0.89, and generate revenue $360,000, otherwise it will fail and produce zero.If the business gets a loan at a competitive rate, then in event of success, the revenue net of loan payment would be _______.
$87,010
$87,990
$88,750
$90,337
i know the answer is 90,337, if you could show the steps, thatd be great, thanks!
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