Hello dear tutor, could you please help me to solve this problem please Thank you very much in advance Suppose a proposed public policy could result in three possible outcomes present value of net benefit of $4,000,000 present value of net benefit of $1,000,000 present value of net benefit of $10,000,000 ( a loss) Suppose society is risk neutral and the probability of occurrence of each of these three outcomes are, respectively 0 85 , 0 10 and 0 05 should this policy be pursued or trashed Why

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Question: Hello dear tutor, could you please help me to solve this problem please? Thank you very much in advance. Suppose a proposed public policy could

Hello dear tutor, could you please help me to solve this problem please? Thank you very much in advance.

Suppose a proposed public policy could result in three possible outcomes:

present value of net benefit of $4,000,000
present value of net benefit of $1,000,000
present value of net benefit of -$10,000,000 ( a loss)

Suppose society is risk neutral and the probability of occurrence of each of these three outcomes are, respectively 0.85 , 0.10 and 0.05 should this policy be pursued or trashed? Why?

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