Question

please show work A decision tree shows a 30 percent probability of $2 million in returns...

please show work

A decision tree shows a 30 percent probability of $2 million in returns and a 70 percent chance of $1 million in returns. What is the maximum you would invest today in this project if the cash in-flow occurs three year in the future and the discount rate is 10 percent?

$967,709

$1,324,856

$1,425,779

$1,181,818

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