Ansah, a financial manageress for a company is considering two competing investment proposals

ana Akosua OWUSU – Ansah, a financial manageress for a company is considering two competing investment proposals. for each of these of proposals, she has carried out an analysis in which she has determined various net profit returns. for proposal A, her analysis shows net profits of GHc 20,000.00, GHc 30,000.00 or GHc 50,000.00 with respectives probabilities 0.2, 0.4 and 0.4. for proposal B, she concludes that there is 50% chance of successful investment, estimated as producing net profits of Ghc 100,000.00 and of an unsuccessful investment, estimated as a break – even situation involving Ghc 0.00 of net profit. assuming that each proposal require the same Ghana cedi investment, which of the two proposals is preferable solely from the standpoint of expected monetary return?

View less »

“Order a similar paper and get 20% discount on your first order with us Use the following coupon “FIRST20”