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Various outcomes for the profitability of a project

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Reference no: EM132007699

An investment company assesses the probability of various outcomes for the profitability of a project according to the following table:

Profit $ Probability

1m 0.4

2m 0.5

4m 0.1

The Expected Value of profit for this project is

A. $1.5m

B. $1.6m

C. $1.8m

D $2.0m

Choose between A-D and explain how did you arrive at the answer?

Reference no: EM132007699

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