Question: Need HELP ASAP! You are asked to choose between two projects, A or B based on the highest gain (or the lowest loss). A will
Need HELP ASAP!
You are asked to choose between two projects, A or B based on the highest gain (or the lowest loss).
A will cost $650,000 and B will cost $480,000.
There is a 56% chance that project A will be successful, which will result in a gain of $1,700,000. If project A fails, there will be a loss of $1,100,000.
There is a 67% project B will be successful, and that will result in a $980,000 gain. If Project B fails there will be a loss of $710,000.
Based on this information, what is the value of the best alternative?
Based on above information;
- Prepare a detailed decision tree with all calculations. Ensure you indicate the option you will opt in this case scenario.

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