You can invest $100,000 into either project a or b. you estimate that a succeeds with probability 0.7 in which case it doubles in value. if it fails, the scrap value is worth $50,000. project b succeeds with probability 0.6, has value $150,000 if it succeeds and value of $30,000 if not. a) you should invest in project a b) you should invest in project b c) you should not invest in either d) you cannot tell from the information presented

a) you should invest project A

Explanation:

It is far more better to invest the $100,000 into project A because:

i) project A has higher probability of success whrn compared to project B (0.7 to 0.6). i.e it is more likely to succeed when you invest in project A than B.

ii) project A has higher interest/values when it succeeds

than project B ( $200,000 to $100,000). i.e success of project A brings about more interest.

iii) project A also have high scrap value when it fails than project B ( $50,000 to $30,000)

I believe with all these reasons it is better to invest in project A.

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return