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Boom Co had annual sales of 100,000 in 20X1 and believes in 20X2 they have an 80% chance of increasing this level of revenue by
Boom Co had annual sales of 100,000 in 20X1 and believes in 20X2 they have an 80% chance of increasing this level of revenue by 25% due to their proposal to open a new store. However, there is a 20% chance they may not open a new store due to fears of a declining market in which case revenue may drop by 10%.
What is the expected value of the revenue in 20X2?
A 98,000
B 118,000
C 120,000
D 132,000
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