The Bilter Company must choose between two mutually exclusive projects. Project 1 is best suited to low levels of demand whereas Project 2 is best suited to high levels of demand. There are only two possible levels of demand - high and low and the probabilities of each event occurring is 0.5. The predicted profits for each project are: Low demand (€) High demand (€) Project 1 455,000 255,000 Project 2 125,000 565,000

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