Question: Q5 33 Points Please use the below information to answer Questions 5.1 and 5.2. Construction Innovation is a construction company based in Melbourne. The CEO

Q5 33 Points Please use the below information toQ5 33 Points Please use the below information toQ5 33 Points Please use the below information to

Q5 33 Points Please use the below information to answer Questions 5.1 and 5.2. Construction Innovation is a construction company based in Melbourne. The CEO of the company is Emily. Emily wants to purchase a land for construction. The price of the land is $2.5 Million. What can be constructed on the land depends on zoning approval from the municipality. There are two possibilities for zoning of this land including zone A and zone B with probabilities of 0.6 and 0.4, respectively. If zone A is approved, she can construct residential units. If zone B is approved, she can develop a shopping centre. If zone A is approved, she has to pay $1 million to the municipality for developing infrastructure. She can construct 2000 residential units. There is 60% chance of selling every unit with a profit of $3000 for every unit or 40% chance of selling every unit for $4500. If zone B is approved, she has to pay $0.5 million to the municipality. If she develops a shopping mall the profit depends on her decision-making pertaining to the size of units. She can build 200 large units or 500 small units. The success of this project depends on the participation of brands in purchasing units and the market prospect. The expected monetary outcomes for the small and large units pertaining to the unit price are presented below. Considering the probabilities, we have: p(high brand participation)=0.3, p(low brand participation)=0.7, P(high market prospect)=0.2 and p(low market prospect)=0.8. Big units rses/298812/assignments/1438977/submissionsew Submit MGMT20005 Assignment 1 (2021) | Gradescope Market Choose files No file chosen Brand participation High Low High 57,000 45,000 Low 31,000 22,000 Small units Market Brand participation High Low High 27,000 20,000 Low 13,000 11,000 Q5.1 30 Points Develop a decision tree and advise the best decision using expected monetary outcome and the folding back approach. You can choose to upload a pdf/image file of your handwritten response here

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