As CEO of Internet Boondoggle Ventures (IBD), you are considering putting together a new vacation...
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As CEO of Internet Boondoggle Ventures (IBD), you are considering putting together a new vacation travel internet planning site. If you put together the site and it is highly successful, you believe the site would generate $8 million in present value of cash flows. If you put it together but it is not successful, you believe the site would generate only $1 million in present value cash flows. You believe there is a 45% probability that the site would be highly successful, and your costs of creating and maintain the site are $3 million.
how much is a study that perfectly predicts whether the site will be successful worth to you? Give the number in millions of dollars. I.e., if the answer is $5,250,000, put in 5.25.
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