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You have a project that costs $1, 600,00. It has a 1/4 chance of paying off $8,000,000 and a 3/4 chance of paying off $0.

You have a project that costs $1, 600,00. It has a 1/4 chance of paying off $8,000,000 and a 3/4 chance of paying off $0. The expected profit from the new project is $400,000. True False

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