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QUESTION ONE An investment in Project A will result in a loss of $26,000.00 with a probability of 30%, break even with a probability of

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QUESTION ONE An investment in Project A will result in a loss of $26,000.00 with a probability of 30%, break even with a probability of 50%, or result in a profit of $68,000.00 with a probability f 20%, Another investment project B will result in a loss of $71,000.00 with a probability of 20%, break even with a probability of 65% or result in a profit of $143,000.00 with a probability of 15%. Which investment is better? Clearly show your workings for each Project in your answer. [20 marks] QUEC

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