A manufacturing firm is considering two mutually exclusive projects, both of which have an economic service life of one year with no salvage value. The Initial cost and the net year-end revenue for each project are given below. Assume that both projects are statistically independent of each other A) B) If you are an expected value maximizer, which project would you select? If you also consider the variance of the project, which project would you select? Project 1 ($1,000) Project 2 ($1300) First Cost Probability .2 0 .2 Revenue $2,500 3,500 3,750 Probability .3 AM 3 Revenue $3,000 3,500 4,500 Net Revenue given in Pw A manufacturing firm is considering two mutually exclusive projects, both of which have an economic service life of one year with no salvage value. The Initial cost and the net year-end revenue for each project are given below. Assume that both projects are statistically independent of each other A) B) If you are an expected value maximizer, which project would you select? If you also consider the variance of the project, which project would you select? Project 1 ($1,000) Project 2 ($1300) First Cost Probability .2 0 .2 Revenue $2,500 3,500 3,750 Probability .3 AM 3 Revenue $3,000 3,500 4,500 Net Revenue given in Pw