Project Decision Outcomes/Event Fund-1 year 2 3 5 200,000 350,000 170,000 230,000 400,000 P(Early milestonesyes) .70 .67 .82 .60 .75 P(Early milestones-no) .30 .33 .18 .40 .25 Long-term funding $ 650,000 780,000 450,000 300,000 450,000 P(Late milestonesyes) .60 .56 .65 .70 .72 P(Late milestones-no) .40 .44 .35 .30 .28 Prelaunch funding $ 300,000 450,000 400,000 500,000 270,000 P(Strategic fit-yes) .80 .75 .83 .67 .65 P(Strategic fit-no) .20 .25 .17 .33 .35 P(Invest-success) P(Invest failure) P(Delay-success) P(Delayfailure) Invest-success Invest failure .60 .65 .70 .75 .80 .40 .35 .30 .25 .20 .80 .70 .65 .80 .85 .20 .30 .35 .20 .15 $ 7,300,000 8,000,000 4,500,000 5,200,000 3,800,000 Delay-success Delay-failure -2,000,000 4,500,000 -1,300,000 -3,500,000 -1,500,000 -2,100,000 -900,000 6,000,000 -4,000,000 3,300,000 2,500,000 2,700,000 -800,000 -1,100,000 -900,000 Determine the expected value for each project, and then rank the projects accordingly for the company to consider. This case is based on R. K. Perdue, W. J. McAllister, P. V. King, and B. G. Berkey, Valuation of R and D Projects Using Options Pricing and Decision Analysis Models," Interfaces 29, no. 6 (November-December 1999): 57-74.