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What is the expected value return for a well at this site

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Reference no: EM131977893

A natural ga company is considering drilling a well in a particular site. It estimates the site will net $135 million if successful (probability of success = 0.03) and will lose $3 million if unsuccessful (probability = 0.97). What is the expected value return for a well at this site? Show work.

Reference no: EM131977893

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