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ARCHI Company assumes that drilling a well costs P200,000. There are three expected outcomes a. 55% probability that the drille dwell is a dry hole
ARCHI Company assumes that drilling a well costs P200,000. There are three expected outcomes
a. 55% probability that the drille dwell is a dry hole
b. 30% probability that the drilled well is a producer well with such rate that can be sold immediately at P1,500,000
c. 15% probability that the drilled well is a producer well with such rate that can be sold immediately at P3,000,000 Determine ARCHI Company's expected profit.
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