Chuck Norris is considering two business ventures. One venture is a heli-ski outfitter in Haines, Alaska and
Question:
Chuck Norris is considering two business ventures. One venture is a heli-ski outfitter in Haines, Alaska and the other is a Seattle startup. If Chuck invests in the Seattle startup venture there is a 30% chance his anticipated returns would be a loss of 20 thousand dollars, a 40% chance his anticipated returns would be 40 thousand dollars, and a 30 % chance his anticipated returns would be 80 thousand dollars. if chuck invests in the heli ski venture there is a 20% chance his anticipated returns would be a loss of 5 thousand dollars, a 50% chance his anticipated returns would be25 thousand dollars, and a 30% chance his anticipated returns would be 40 thousand dollars. Which venture would give the greatest expected returns given that each take 1 million dollars to start up. What would be other considerations? What would be the expected return in Chuck invested $500,000 in each?
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher