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You can invest $100,000 into either project A or B. You estimate that A succeeds with probability 0.7 in which case it doubles in value.
You can invest $100,000 into either project A or B. You estimate that A succeeds with probability 0.7 in which case it doubles in value. If it fails, the scrap value is worth $50,000. Project B succeeds with probability 0.6, has value $150,000 if it succeeds and value of $30,000 if not. You should invest in project A You should invest in project B You should not invest in either You cannot tell from the information presented
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