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A startup is developing a new technology. The probability of success is 40%, which would result in a profit of $2,000,000. The probability of failure is 60%. The company's investors will only fund the project if the expected payoff is at least $500,000. What is the maximum financial loss the company can sustain in the event of failure while still meeting the investors' requirement?
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A startup is developing a new technology. The probability of success is 40%, which would result in a profit of $2,000,000. The probability of failure is 60%. The company's investors will only fund the project if the expected payoff is at least $500,000. What is the maximum financial loss the company can sustain in the event of failure while still meeting the investors' requirement?
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