Lisa Oberlin is a property owner and is faced with three choices:

• A large-scale investment to improve her apartments. After extensive market research it is considered that there is a 49% chance that a pay-off of $3,100,000 will be obtained, but there is a 51% chance that it will be only $748,000. This could produce a substantial pay-off in terms of increased revenue net of costs but will require an investment of $1,945,000.
• A smaller scale project to re-do her landscape. Research data suggests a 84% chance of a gain of $1,500,000 but a 17% chance of it being only $525,000. This alternative will require an investment of $1,349,250.
• Continuing the present operation without change. It will cost nothing, but neither will it produce any pay-off. Tenants will be unhappy and it will become harder and harder to rent the apartments out when they become free.

a. Will Lisa make net profit or loss if she selects to invest in improving her apartments. What will be the expected profit/loss (EMV): [ Select ] ["-148,000", "$3,750", "$-44,520", "$124,250", "$2,520"]

b. Will Lisa make net profit or loss if she selects to invest in improving her landscaping. What will be the expected profit/loss (EMV): [ Select ] ["$37,000", "$0.00", "-$93,750", "$-250,000", "$885,750"]

c. What will be the net payoff if Lisa selects to make no changes: [ Select ] ["$-150,000", "$19,930", "$-100,000", "$0.00", "$-600,000"]

d. Given the three expected payoffs, what should be Lisa's final choice