Question: To evaluate alternative new venture strategies using decision trees, it is necessary to: A. Construct a decision tree of all of the real options, and
To evaluate alternative new venture strategies using decision trees, it is necessary to:
A. Construct a decision tree of all of the real options, and their associated payoffs and probabilities, then, starting with the last decision, evaluate the conditional value of each alternative and work backward through the tree to the initial decision.
B. Construct a decision tree of the important options, and their associated payoffs and probabilities, then, starting with the last decision, evaluate the conditional value of each alternative and work backward through the tree to the initial decision.
C. Construct a decision tree of the important options, and their associated payoffs and probabilities, then, starting with the current decision, evaluate the value of each alternative, working forward through the tree to the final decision.
D. Construct a decision tree of all of the real options, and their associated payoffs and probabilities, then, starting with the current decision, evaluate the value of each alternative, working forward through the tree to the final decision.
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