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Question 23 (4 points) You purchase a small office building for $750,000. Below are the expected income from the investment under two different scenarios: The

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Question 23 (4 points) You purchase a small office building for $750,000. Below are the expected income from the investment under two different scenarios: The Probability of Bad State of economy is 0.4 and the cash flow is $50,000; The Probability of Bad State of economy is 0.6 and the cash flow is $80,000. What is the expected ROI of this investment? 5 18 8.7% 9.1% 21 10.7% 17.3% 24

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