Question: i just need the answer for wuestion e.) A builder has located a piece of property that she would hike to buy and eventually build

i just need the answer for wuestion e.)  i just need the answer for wuestion e.) A builder has
located a piece of property that she would hike to buy and

A builder has located a piece of property that she would hike to buy and eventually build on. The land is currently zoned for four homes per acte, but she is planning to request new zoning. What she bulids depends on approval of zoning requests and your analysis of this problem to advise her. With her input and your help, the decision process has been reduced to the following costs, alternatives, and probabilities: Cost of tand $3 million. Probability of rezoning: 0.40 If the land is rezoned, there W li be additional costs for new roads, lighting. and so on, of $1 million If the land is rezoned, the contractor must decide Whether to bulld a shopping center or 1,400 apartments that the tentative plan shows would be possible. If she builds a shopping center, there is a 50 percent chance that she can sell the shopping center to a large department store chain for $5 milion over her construction cost. Which excludes the land; and there is a 50 percent chance that she can sell it to an insurance company for $8 million over her construction cost (also excluding the land) if, instead of the shopping center. she decides to build the 1,400 apartments, she places probabilites on the profits as follows. There is a 60 percent chance that she can sell the apartments to a real estate investment corporation for $2,000 each over her construction cost: these is a 40 percent chance that she can get $2,500 each over her construction cost (Both exclude the land cost) If the land is not rezoned, she will comply whin the existing zoning restrictions and simply buid 500 homes, on which she expects to make \$3,900 over the construction cost on each one (excluding the cost of land) d. What is the expected revenue, if the land is not rezoned (excluding the land cost)? Note: Do not round your intermediate calculations. Enter your answers in millions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign. e. What is the expected net profit of entire project, including all applicable costs? Note: Do not round your intermediate calcultions. Enter your answers in millions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign

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