This question is from problem set 3 thank you.

Question 2. You are considering setting up a n\" to produce gadgets. The demand for gadgets can be high, medium, or low with equal probability. The corresponding cash ows are: Darn and Annual Cash Flows High am Medium D L'D'W one These cash flows will begin one year after the investment is made and continue forever. The oust of the project is $300 today. The discount rate is S': (yes, that's not a typo). a] What is the NW of the project? b) Suppose you can conunission a study that tells you what the demand for gadgets will be. The study takes two years to complete. What is the NW of the project if you commission the study'iI c] Suppose that you can commission a different type of study that takes only one year to complete. The drawback of this type of study is that the information is less precise than in part b}. The result of the study will be either "positive" or I*negative" with equal probability. When the result is positive demand will be high with probability 233 and medium with probability HS {and low with probability zero]. When the result is negative demand will be low with probability 21'? and medium with probability US. What is the NW of the project if you commission this type of study? d) Which type of study, if any, should you commission?I