- Southernwinds Inc Is Evaluating A Project That Costs 700 000 It Has A 45 Chance Of A 1 000 000 Payoff And A 55 Ch 1 (30.77 KiB) Viewed 11 times
SouthernWinds, Inc. is evaluating a project that costs $700,000. It has a 45% chance of a $1,000,000 payoff and a 55% chance of a $200,000 payoff. Which of the following statements below is true? The
company should accept the project because the payoff is $600,000 and the expected profit is $100,000. The
company should not accept the project because the payoff is $600,000 and it has an expected loss of $100,000. The
company should accept the project because the payoff equals $560,000 and it has an expected profit of $140,000. The
company should not accept the project because the payoff equals $560,000 and it has an expected loss of $140,000.