Question: I have a question for sensitivity analysis and decision tree. 1. If the company does not hire a business analyst: Alternatives States of Nature EMV

I have a question for sensitivity analysis and decision tree.

1. If the company does not hire a business analyst: Alternatives States of Nature EMV Node Optimistic Conditions Realistic Conditions Pessimistic Conditions Apartment Building $490,000 $390,000 -$240,000 350,400 Office Building $350,000 $230,000 -$190,000 222,800 Warehouse $250,000 $160,000 -$100,000 161,200 Probability 0.36 0.52 0.12 2. If the company hires a business analyst: Fee for Survey $12,000 2.1 If the analysis report is positive: Alternatives States of Nature EMV Node Optimistic Conditions Realistic Conditions Pessimistic Conditions Apartment Building $478,000 $378,000 -$252,000 376,700 Office Building $338,000 $218,000 -$202,000 253,400 Warehouse $238,000 $148,000 -$112,000 180,600 Probability 0.68 0.21 0.11 2.2 If the analysis report is negative: Alternatives States of Nature EMV Node Optimistic Conditions Realistic Conditions Pessimistic Conditions Apartment Building $478,000 $378,000 -$252,000 86,000 Office Building $338,000 $218,000 -$202,000 35,600 Warehouse $238,000 $148,000 -$112,000 38,700 Probability 0.23 0.27 0.5 3. Final Solution 3.1 EMV (hire a business analyst) Probability of report results positive 0.5 Probability of report results negative 0.5 Node EMV (Report results positive) 376,700 EMV (Report results negative) 86,000 EMV (Hire a business analyst) 376,700 3.2 Final EMV Node EMV (Hire a business analyst) 376,700 EMV (Do not hire a business analyst) 350,400 Final EMV (Hire/Do not hire a business analyst) Hire

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