Question: SHOW YOUR WORK AND SOLUTIONS A decision tree shows a 40% probability of $2 million in returns and a 60% chance of $1 million in

SHOW YOUR WORK AND SOLUTIONS

A decision tree shows a 40% probability of $2 million in returns and a 60% chance of $1 million in returns. Is this project acceptable? Other assumptions are Initial cost = $100,000; cash flows at end of years; cash in-flow occurs one year in the future and the discount rate is 10%.

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