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Suppose you are working for an oil drilling company. Historically, you have found 15% of the drilling projects are successful. When successful the payoff is
Suppose you are working for an oil drilling company. Historically, you have found 15% of the drilling projects are successful. When successful the payoff is $350,000. When unsuccessful the payoff is zero ($0). If the cost of exploration is $75,000, the expected net benefit is ___________ and the project should be _________. $52,500; accept $52,500; reject -$22,500; accept -$22,500; reject
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