Dave has to pay $10,000 today for a full report on the potential earnings from his new chic fil a franchise location. If he decides to open it, he will have to pay $150,000 today. In his first year, theres a 60% chance that hell earn $50,000 and a 40% chance that hell do great with marketing and earn $100,000. his second year, he's guaranteed to earn $70,000. And in the third year, depending on the Boston Red Sox winning the World series, hell earn $120,000 if they win (20% chance) and $50,000 if they lose (80% chance). Should you take the project if interest is 7%?