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# TOPIC: PMP - Decision Tree Question

## PMP - Decision Tree Question 6 years 10 months ago #11678

 Monique Maxmillion Topic Author Offline Fresh Boarder Posts: 4 Thank you received: 0 You are asked to choose between two projects A or B based on the highest gain (or the lowest loss). A will cost U.S. \$650,000 and B will cost U.S. \$467,000. There is a 56% chance that project A will be successful, which will result in a gain of U.S. \$1,800,000. If project A fails there will be a loss of U.S. \$900,000. There is a 67% project B will be successful, and that will result in a U.S. \$950,000 gain. If Project B fails there will be a loss of U.S. \$670,000. Based on this information, what is the value of the best alternative? A. U.S. \$-38,000 B. U.S. \$38,000 C. U.S. \$-51,600 D. U.S. \$51,600 Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## PMP - Decision Tree Question 6 years 6 months ago #12908

 Aghalar Visitor Answer A Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## PMP - Decision Tree Question 6 years 4 months ago #13592

 yasmin Visitor Monique Maxmillion wrote: You are asked to choose between two projects A or B based on the highest gain (or the lowest loss). A will cost U.S. \$650,000 and B will cost U.S. \$467,000. There is a 56% chance that project A will be successful, which will result in a gain of U.S. \$1,800,000. If project A fails there will be a loss of U.S. \$900,000. There is a 67% project B will be successful, and that will result in a U.S. \$950,000 gain. If Project B fails there will be a loss of U.S. \$670,000. Based on this information, what is the value of the best alternative? A. U.S. \$-38,000 B. U.S. \$38,000 C. U.S. \$-51,600 D. U.S. \$51,600 Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## PMP - Decision Tree Question 6 years 1 week ago #14619

 Anonymous Visitor A Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## PMP - Decision Tree Question 5 years 6 months ago #16292

 Mengis Visitor The answer is as stated above. Here is break down : Apply the EVM equation : Project A. -\$650,000 +(56% *×1,800,000 ) + (-44% of the \$900,000) = -\$38,000 Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.
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