a) As a consultant, explain to the construction manager the benefits of using a decision tree to determine EMV.

b) Based on this scenario (draw a decision tree with EMV), state your recommendation to the construction manager.

\begin{tabular}{|l|l|} \hline Option & Payoff \\ \hline Site A & SiteAhasfavorableoutcome60%withRM15millionestimatedprofitandunfavorable40%chanceofRM2millionestimatedprofit \\ \hline Site B & SiteBhasafavorableoutcomeof70%RM30millionestimatedprofitandunfavorable30%chanceofRM6millionestimatedprofit. \\ \hline \end{tabular} Table 2: Option payoff and investment at Project at Site A and B