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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 |
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$1,324,856 |
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$1,425,779 |
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$1,181,818 |
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