How much to pay for deal and explain why

Reference no: EM13116435

You have been offered hundreds of the same business deals. For each you estimate that there is a 1% chance of making $100,000; 4% chance of making $40,000; a 20% chance of making $10,000; and 75% chance of making $0. How much should you be willing to pay for this deal? Do you think you would actually pay that much? Why? Expected Value:? Pay it? Why?

Reference no: EM13116435

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