Ticket to chance drawing, If you had a ticket to a chance

Ticket to chance drawing

Assignment Help Financial Management

Reference no: EM131980493

1. If you had a ticket to a chance drawing, with a 50% chance of receiving nothing and a 50% chance of receiving $5 million, and you were offered $2 million (assumed to be guaranteed) to surrender the ticket, would you agree to surrender the ticket? Why?

2. If you were a finance manager what discounted method would you use and why (NPV, IRR, Payback)?

Reference no: EM131980493

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