Use the same example of bill's finding a summer job with modified values as below, compute the Expected Monetary Value(EMV) of decision and event nodes (ABCDE) .

b) By doing sensitivity analysis of P, compute the critical value P* (the dividing point Bill would change his original optimal strategy

A partnership begins its first year of operations with the following capital balances:

Alberta............................................................... $150,000

Barcelona......................................................... 110,000

Catalina............................................................. 150,000

According to the articles of partnership, all profits will be assigned as follows:

Annual salary to Alberta is $50,000 and Barcelona $40,000

The partners will receive interest equal to 10% of the capital balance as of the first day of the year.

The remainder will be assigned on a 4:2:4 basis, respectively.

Each partner is allowed to withdraw up to $15,000 per year.

Notes: The net income for the first year of operations was $125,000 and $150,000 for year two. Each partner withdraws the maximum amount from the business each period.

Show the schedules (Allocation of Net Income and Statement of Capital) to determine the ending capital in the partners' accounts.).

1600 1800 Accept Accept A Offer Reject 2400 Reject 0.05 1800 P=0.5 0.25 E B) 1700 0.40 1200 No offer 0.25 0 1-P-0.5 0.05 2400 0.05 0.25 1800 0.40 1700 0.25 1200 0 0.05 1600 1800 Accept Accept A Offer Reject 2400 Reject 0.05 1800 P=0.5 0.25 E B) 1700 0.40 1200 No offer 0.25 0 1-P-0.5 0.05 2400 0.05 0.25 1800 0.40 1700 0.25 1200 0 0.05