Question

The Expected Monetary Value for the project is:

$100,000 profit

$60,000 loss

$ 20,000 profit

$40,000 loss

Answer 1

Expected Monitory Value (EMV) is computed by EMV = Probability × Impact.

Compute both positive and negative values and then add them:

0.6 × $100,000 = $60,000 0.4 × $100,000 = $40,000 EMV = $60,000 - $40,000 = $20,000 profit