Question: Starting with the finished version of Example 7 . 2 , change the decision criterion to maximize expected utilityusing an exponential utility function with a

Starting with the finished version of Example 7.2, change the decision criterion to maximize expected utilityusing an exponential utility function with a risk tolerance of $5 million. Display certainty equivalents on the tree. aKeep doubling the risk tolerance until the company's best strategy is the same as with the EMV criterion-continue with development and then market if successful The tolerance must reach $ 160,000,000 before the risk-averse company acts the same as the EMV-maximizing company 320 even though the EMV from the original strategy (with b. With a risk tolerance of $320,000,000, the company views the optimal strategy as equivalent to receiving a sure risk tolerance) is Round your final answer to the nearest $100, if necessary)

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