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A natural gas company is considering drilling a well in a particular site. It estimates the site will net $300 million if successful (probability of...

A natural gas company is considering drilling a well in a particular site. It estimates the site will net $300 million if successful (probability of success = 0.02) and will lose $5 million if unsuccessful (probability = 0.98). What is the expected value return for a well at this site?

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