Question: BallGame.com Inc. is considering undertaking one of the two mutually exclusive projects: A and B. The firm is currently valued at $100M. Assume zero discount

BallGame.com Inc. is considering undertaking one of the two mutually exclusive projects: A and B. The firm is currently valued at $100M. Assume zero discount rate. Projects A and B have the following cash flows:

Find the expected value at each state of nature for a given range

			A	B
Cash flows in year 0 (initial costs)			-50	-50
Cash flows at the end of year 1	Good State (prob.=1/3)	F>140	170	140
	Neutral State (prob.=1/3)	100	100	120
	Bad State (prob.=1/3)	F<140	0	40

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