Probability in Business: using expected values of three different investments

oldnewstudent

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Don't need answer, just how to start formula

Scenario:
You work for a private investment company that currently has numerous business investments in real estate development, restaurant franchises, and retail chains. Following an exhaustive search for new investment opportunities, you have found three possible alternatives, each of which will pay off in exactly 10 years from the date of initial investment. Because you only have enough money to invest in oneof the three options, you recognize that you will need to complete a quantitative comparison of the three alternatives:

Option A: Real estate development.
Option B: Investment in the retail franchise “Just Hats,” a boutique that sells hats for men and women.
Option C: Investment in “Cupcakes and so forth,” a franchise that sells a wide variety of cupcakes and a variety other desserts.
Download the raw data for the three investments in this Excel document:



Assignment
Develop an analysis of these three investments in Excel. Use expected value to determine which of the three alternatives you should choose.
 
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