A decision tree shows a 40% probability of $2 million in returns. A 60% probability of 1$

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A decision tree shows a 40% probability of $2 million in returns. A 60% probability of 1$ million in returns.

What is the maximum you would invest today in this project if the cash inflow occurs one year in the future and the discount rate is 10%?

Related Book For answer-question

Financial Accounting and Reporting a Global Perspective

ISBN: 978-1408076866

4th edition

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

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Posted Date: Jun 17, 2023 09:32 AM

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A decision tree shows a 40% probability of $2 million in returns. A 60% probability of 1$

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