A company is considering investing in two different projects Project A and Project B The potential profits, as well as the associated risks, are shown in the table below Project Potential Profit Probability of Success A $4,000,000 0 6 $2,000,000 0 4 B $6,000,000 0 4 $3,000,000 0 6 The company is risk averse and wants to choose the project with the highest expected profit while also minimizing the risk Determine which project the company should choose Show all calculations and express your final answer in dollars (20 marks)

Question: A company is considering investing in two different projects: Project A and Project B. The potential profits, as well as the associated risks, are shown

A company is considering investing in two different projects: Project A and Project B. The potential profits, as well as the associated risks, are shown in the table below:

Project	Potential Profit	Probability of Success
A	$4,000,000	0.6
	-$2,000,000	0.4
B	$6,000,000	0.4
	-$3,000,000	0.6

The company is risk-averse and wants to choose the project with the highest expected profit while also minimizing the risk. Determine which project the company should choose.

Show all calculations and express your final answer in dollars. (20 marks)

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