A company has GH¢100 million available in cash. It can invest the money in a bank at 10% yielding a return of GH¢ 150 mi

[answerhappygod]

A company has GH¢100 million available in cash. It can invest
the money in a bank at 10% yielding a return of GH¢ 150 million
over five years (ignore compound interest). Alternatively it can
invest in a project for some clients, of which there are currently
two available projects. If it invests in Project A there is a 0.5
chance of the project being a success yielding GH¢ 200 million, and
a 0.5 chance of the project failing leading to a loss of GH¢ 50
million.(over the five year period) If it invests in Project B
there is a 0.6 chance of the project being a success yielding GH¢
300 million and a 0.4 chance of the project failing leading to a
loss of GH¢ 20 million. (over the five year period). Advise your
company on the project that should be selected. A software company
wants to sell its software for outright sale with licensing rights.
The company is faced with the decision of whether to sell the
software now, or wait for a year in the hope that the value of the
software may appreciate to a higher level. If it sells the software
now the company will receive GH¢ 250,000. However, if it sells in
one year there are two possibilities: 1. There is a slump in the
software market, so that the software can only be sold for GH¢
200,000. There is a nine out of ten chance that this will happen.
2. There is a boom in the software market, so that the software can
be sold for GH¢ 800,000. There is a one out of ten chance that this
will happen. You are required to advice the company on the best
cause of action. Should the company wait or sell now?