Question: Global Pharmacy Plc is considering 4 mutually exclusive one-year projects. Global Pharmacy Plc obtained the following information: Return Probability of return occurring Project 1 -10,000

Global Pharmacy Plc is considering 4 mutually exclusive one-year projects. Global Pharmacy Plc obtained the following information:

Return Probability of return occurring

Project 1 -10,000 0.4

70,000 0.6

Project 2 95,000 0.1

30,000 0.9

Project 3 38,000 1

Project 4 40,000 0.8

80,000 0.2

Calculate the expected return of the projects and advise which project to choose. The cost of capital is 10%

a. Project 2

b. Project 3

c. Project 4

d. Project 1

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