What is the expected rate of return on the project

Reference no: EM13303041

Consider the following probability distribution of returns estimated for a proposed project that involves a new ultrasound machine;

State of the Economy Probability of Occurrence Rate of Return
Very Poor 0.10 -10.0%
Poor 0.20 0.0
Average 0.40 10.0
Good 0.20 20.0
Very Good 0.10 30.0

Question; What is the expected rate of return on the project?

Reference no: EM13303041

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