Question: Please show all work and use correct formulas Read carefully! The owner of the Columbia Construction Company must decide between building a housing development, constructing

Please show all work and use correct formulas
Read carefully! The owner of the Columbia Construction Company must decide between building a housing development, constructing a shopping center, and leasing all the company's equipment to another company. The project cost that will result from each alternative will be determined by whether community health benefit remain stable, decline or increase. The cost from each alternative, given the three possibilities for future community benefit state, is shown in the following table: Community benefit Stable Declines Increase 70K 30K 80K 105K 100K 20K Houses Shopping Center Leasing 40K 39K 40K Determine the best decision, using the following decision criteria. a. (3 pts) EV for P(Stable)=0.45, and P(Declines)=0.2 EV[H]= EV[SC]= EV[L]= Decision b. (4 pts) EOL or Expected Regret. Calculate Regret: Decision Stable Declines Increase Houses Shopping Center Leasing EOL(H)= EOL(SC)= EOL(L)= Decision c. (3 pts) EVwithPI= EVwithoutPI = EVPI=Step by Step Solution
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