Question: O WORDS POWERED BY TINY P QUESTION 2 10 points suved In evaluating the risks associated with future economic and market conditions, there is a

O WORDS POWERED BY TINY P QUESTION 2 10 points suved In evaluating the risks associated with future economic and market conditions, there is a 70% chance (or 0.70) of favorable market conditions in the future, and a 30% chance for 0.30) of only average market conditions. Market research has produced revenue estimates for two different projects under these two market conditions. Project A under favorable market conditions could earn our organization $400,000... and only $150.000 under average market conditions Project B under favorable market conditions could earn our organization $500,000... but only 550.000 under average market conditions. Use decision-tree and/or expected value calculations to determine if Project A or Project B is a better option. 1) Calculate a net present value for each of the two projects. 2) Which project should be selected, and why? Show all of your calculations and work

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