QUESTION THREE

Total marks for Question Three $=20$ marks

Background

A construction company is planning ahead and will undertake one of five strategies dependent on the economic outlook. The data in Table $1$ gives the Net Present Values $($NPV$,$ $ million$)$ estimated by the company for the five alternative strategies $,D$&$E$ in relation to the economic outlooks.

$\backslash$table$[[,$Economic outlook$],[\backslash$table$[[$Likelihood of$],[$occurrence$]],0\mathrm{.}3,0\mathrm{.}5,0\mathrm{.}1,0\mathrm{.}1$