Part A (20 pts): If you make your decisions based on the expected value, would you enter the bidding? What markup percent would you select? The estimated cost of the project is $100 million dollars (e.g. this is the amount for which you determine the actual profit; for example profit of 10% = 0.1*100,000,000). Prob. of Problems =0.5 Problems -0.5 Profit: -1% Profit: -1% Prob. of Winning =0.1 Profit: 9% Profit: -0.2% Prob. of Problems =0.5 10% Markup Profit: - 4% Prob. of Winning =0.65 Bid 5% Markup Profit: 5% Profit: -0.2% Prob. of Problems =0.5 Profit: -5% 2% Markup Prob. of Winning =0.7 Profit: 2% Profit: -0.2% Do not Bid Profit: 0%