Question: DRAW an influene diagram. In this problem description, I've blacked-out the numbers to emphasize the point that model-designs should not require that you know the

DRAW an influene diagram.

In this problem description, I've blacked-out the numbers to emphasize the point that model-designs should not require that you know the numbers. Review the problem and draw an influence diagram (ID).

DRAW an influene diagram. In this problem description, I've blacked-out the numbers

an office building over a 5-year period. The building contains square feet. You would like to charge rent of $ per square foot. However, demand varies based on the rental rate. You believe that the percentage of the building that you can fill with tenants is given by the equation: %Occupied=mR+bm=R=b=($/sq.ft.) The owners must pay for the costs of operating the building. The initial average operating cost per square foot (on the whole building) is $, and this includes insurance, maintenance, and certain utilities. The owners also pay the heating bill and therefore estimate an additional cost of % of this initial average operating cost on each rented square foot. These operating costs are expected to grow % per year. The annual mortgage payment is $ million and the effective tax rate is %. Calculate the annual after-tax profit and the total profit over five years. (You may ignore discounting and depreciation.)

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