Please answer all questions especially part c$.$

Place$-$Plus, a real estate development firm, is considering several alternative development projects.

These include building and leasing an office park, purchasing a parcel of land and building an office building to rent,

buying and leasing a warehouse, building a strip mall, and building and selling condominiums. The financial success

of these projects depends on interest rate movement in the next $5$ years. The various development projects and their

$5-$year financial return $($in $$1,000,000$ s$)$ given that interest rates will decline, remain stable, or increase, are shown in

the following payoff table:

The Place$-$Plus real estate development firm has hired an economist to assign a probability to each direction interest

rates may take over the next $5$ years. The economist has determined that there is a $\mathrm{.}50$ probability that interest rates

will decline and $\mathrm{.}40$ probability that rates will remain stable.

a$.(1\mathrm{.}5$ pts$)$ Using expected value, determine the best project.

The best project is the condominium, due to having the highest expected payoff of $2\mathrm{.}28.$

b$.(2\mathrm{.}5$ pts$)$ Using expected regret $($opportunity loss$),$ determine the best project.

The best project is the condominium, due to having the lowest EOL of $.64.$

c$.(2$ pts$)$ What is the maximum amount the Place$-$Plus CEO would be willing to pay for the perfect insider

information?