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Which project yields the greatest return

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Question - You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoff are summarized in the following table:

Project

Boom (50%)

Recession (50%)

A

$20

-$10

B

-$10

$20

C

$30

-$30

D

$50

$50

Which project yields the greatest return, regardless of whether a boom or a recession occurs?

A. A

B. B

C. C

D. D

Reference no: EM132201894

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