(Answered) A public policy results in 3 possibilities 1 present value

Management Studies

A public policy results in 3 possibilities. 1) present value of net benefits is $4,000,000 and the probability is .85, 2) present value of net benefits is $1,000,000 and the probability is .1, 3) present value of net benefits is $10,000,000 and the probability is .05. Not pursuing the policy would result in a present value of benefits = $0. If society is risk neutral should teh policy be pursued ? If society is risk averse would you be more or likely to pursue the policy? And why?

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