Suppose that your organization is deciding which of four projects to bid on, as summarized in the following table. Assume that all up-front investments are not recovered, so they are shown as negative profits. Draw a diagram and calculate the EMV for each project. Write a few paragraphs explaining which projects you would bid on. Be sure to use the EMV information and your personal risk tolerance to justify your answer.

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Project Project 1 Project 2 Project 3 Project 4 Chance of Outcome 50 percent 50 percent 30 percent 40 percent 30 percent 70 percent 30 percent 30 percent 30 percent 20 percent 20 percent Estimated Profits $120,000 -$50,000 $100,000 $ 50,000 -$60,000 $ 20,000 -$ 5,000 $ 40,000 $ 30,000 $ 20,000 -$50,000