If the present discounted value of a payment is $1,000,000 and there is a 40 percent chance that the payment will not occur,then the expected value is

Name: If the present discounted value of a payment is $1,000,000 and there is a 40 percent chance that the payment will not occur,then the expected value is
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Quizplus · Accepted Answer

The expected value is calculated by multiplying the present value by the probability of occurrence: $1,000,000 * (1 - 0.40) = $600,000.

If the Present Discounted Value of a Payment Is $1,000,000