Question: it's advanced research class. Please give me the process A drilling company has estimated a 40% chance of striking oil for their new well. The

it's advanced research class.

Please give me the process

A drilling company has estimated a 40% chance of striking oil for their new well. The profit of a successful well is 10M, and the cost of drilling a well is 3M.

Should the drilling company start a new well drilling based on the expected profit approach? What is the EVPI?

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