You are analyzing 2 projects. Details are as follows:
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|
|
|
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Brazil expansion ii $200,000
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Probability
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Return
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Best
|
0.2
|
0.17
|
|
Most likely
|
0.6
|
0.1
|
|
Worst
|
0.2
|
0.03
|
|
Costa Rica expansion
|
|
|
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ii $250,000
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Probability
|
Exp. Return
|
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Best
|
0.2
|
0.16
|
|
Most likely
|
0.6
|
0.1
|
|
Worst
|
0.2
|
0.04
|
What is the expected return for each option?
Just using information given, which has the highest risk?
List 2 other factors other than expected return you might use in considering which is the best choice for the company?