?A company can choose from four mutually exclusive investment projects. The return on the project?will depend on market conditions.?
The table below details the returns for each possible outcome:??
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? A? ? ? ? ? ? ? ? ? ? ? ?B? ? ? ? ? ? ? ? ? ? ? ? C? ? ? ? ? ? ? ? ? ? ? ?D?
Poor? ? ? ? ? ? ? ? ? ? ? ? ? ?$400,000? ? ? ? $700,000? ? ? ? ? ?$450,000? ? ? ? ?$360,000?
Average? ? ? ? ? ? ? ? ? ? ?$470,000? ? ? ? ?$550,000? ? ? ? ? ?$500,000? ? ? ? ?$400,000?
Good? ? ? ? ? ? ? ? ? ? ? ? ? $600,000? ? ? ? $300,000? ? ? ? ? ? $800,000? ? ? ? ?$550,000?
If the company applies the maximin rule it will invest in:?