題組內容

[題組三25%](每題5分)
 A rare earth metals drilling company in Norh America must decide whether or not to engage in a new drillingactivity before regulators pass a law that bans drilling 
at that site. The cost of drilling is $1,000,000. After drilling is completed and
 the drilling costs are incurred, the company will learn whether or not there are rare earth metals. If there are rare earth metals, operating profits generated are estimated at $4,000,000. If there are no rare carth metals, there will be no future profits.

3.To be on the safe side, the company hires a specialist to come up with a more accurate estimate of p. What is the minimum vale of p for which it would be the company's best response to go ahead and drill?