Question: please answer parts a through d please! A builder has located a piece of property that she would like to buy and eventually build on.

A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homos per acre, but she is planning to request new zoning. What she bullds depends on approval of zoning requests and your analysis of this Probability of rezoning: 0.50 If the land is rezoned, there will be additional costs for new roads, Iighting, and so on, of $1 milion. If the land is rezoned, the contractor must decide whether to bulid a shopping center or 1.400 apartments that the tentative plan department store chain for $4 milion over her construction cost, which excludes the land; and there is a 20 percent chance that she she decides to build the 1,400 apartments, she places probabilities on cost (olso excluding the land). If instead of the shopping center, sell the apartments to a real estate investment corporation for $3,000 each profits as follows. There is a 50 percent chance that she can that she can get anly $2,500 each over her construction cost. (Both exche over her construction cost, there is a 50 percent chance If the land is not rezoned, she will comply with the existing zoning restrictions and simply build 550 homes, on which she expects to make $3,600 over the construction cost on each one (excluding the cost of iand) a. What is the expected value for the rezoned shopping center, if the rezoning cost is included (but land cost is excludeap? (Do nor round your intermediate calculations. Enter your answers in millions rounded to 2 decimal places. Negative amounts should be Indicated by a minus sign.) b. What is the expected value for the rezoned apartments, if the rezoning cost is included (but land cost is excludec)? (Do not round your intermediate calculations. Enter your answers in millions rounded to 2 decimal places. Negative amounts should bo indicated by a minus sign.) c. If the land is rezoned, what should the contractor decide? Build shopping center Build apartments d. What is the expected revenue, if the land is not rezoned (excluding the land cost)? (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.)
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