Question: PLEASE SHOW USING EXCEL TABLES You must choose between the two projects below. What is the EMV for each? Looking at your own personal Risk

PLEASE SHOW USING EXCEL TABLES

You must choose between the two projects below. What is the EMV for each? Looking at your own personal Risk Utility Function, which project would you select and why?

Project 1 has a 70% chance of earning $500,000, and a 30% chance of losing $100,000.

Project 2 has a 20% chance of earning $2 million, a 20% chance of earning $1 million, and a 60 percent chance of losing $500,000.

PLEASE SHOW USING EXCEL TABLES

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