Randall Systems in considering four projects A, B, C and D that have risks associated with the producing benefits. Based on the information given in the table below, which project is more desirable for the company?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Randall Systems in considering four projects A, B, C and D that have risks associated with the producing benefits. Based on the information given in the table below, which project is more desirable for the company?

 

Project A                      Project B                       Project C                       Project D

EUAW  Prob.                EUAW  Prob.                EUAW  Prob.                EUAW  Prob.

$2,000  0.2                   $3,000  0.1                   -$5,000 0.2                   $4,000  0.4

$1,500  0.5                   -$2,500 0.4                   $6,500  0.5                   $2,500  0.3

$3,000  0.3                   $3,500  0.5                   $1,000  0.3                   -$2,000 0.3

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