Question: Project 1 has a 50% probability to win the contract (profit the company $200,000) 25% probability to not win (cost -$100,000) and 25% to share

Project 1 has a 50% probability to win the contract (profit the company $200,000) 25% probability to not win (cost -$100,000) and 25% to share the project with another company (profit the company $100,000). On the other hand, for Project 2, the probability to win the contract is 80% (profit the company $100,000) and 20% not to win the contract (Will cost -$50,000). Calculate the expected monetary value of project 1? And which project would you choose?

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