On P$1,$ the decision maker is sure to earn $$10,000$ if no delay occurs. But if

delay occurs, chance of which is only $10\%,$ ABC will have to pay a penalty of

$$7,000.$ In case of delay, however, ABC has the option to expedite the project at a

cost of $$3,000.$ But in that case, there is a chance with a probability of $10\%$ that the

quality of work will not be acceptable to the client. The quality clause of the contract

implies that ABC will pay $$10,000$ for unacceptable quality of work.