Question: Wildcat Enterprises is considering two projects that will required the investment of $100,000. Using the expected rate of return for each project, indicate which of
Wildcat Enterprises is considering two projects that will required the investment of $100,000. Using the expected rate of return for each project, indicate which of the two you would recommend. Justify your choice.
Project A
| Dollar amount of Return | Probability of Outcome |
| $7,000 | .05 |
| 5,000 | .50 |
| 1,000 | .30 |
| < 2,000> | .15 |
Project B
| Dollar amount of Return | Probability of Outcome |
| $ 30,000 | .25 |
| 12,000 | .15 |
| 1,000 | .30 |
| <35,000> | .30 |
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