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Go-big-or-go-home campaign

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Reference no: EM131101951

Could you help me answer the question below? I just need a short and quick answer.

You are the CEO of a firm currently earning $10M/year in economic profits. Your head of marketing comes to you with what she calls a brilliant marketing campaign. The campaign costs $6M, and is a go-big-or-go-home campaign: there's a 70% chance it will increase revenue by $9M, and a 30% chance it will increase revenue by only $4M. Do you approve the campaign?

Reference no: EM131101951

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