PMP Exam Set C – Q23

A project manager has decided to use a decision tree to make a build or upgrade analysis. The build requires an investment of $ 200 M (where M represents million). On the build decision branch, there is a 60% probability of strong demand (yielding a revenue of $ 400 M) and a 40% probability of weak demand (yielding a revenue of $150 M). What is the expected monetary value (EMV) of the build?

A. $ 100 M
B. $ 300 M
C. $ 140 M
D. $ 200 M

A. $ 100 M