Using the Decision tree analysis formula, compute for the EV.

HIJ Contractors has to decide whether to prepare a bid or not. The proposal Bid Cost 4,000.00. If the Bid is submitted the probable contract award is 60%. If the company is awarded the contract, it may earn an income of 70,000.00 or pay a fine of 10,000.00 if it fails. The probability of success estimated to be 70%.

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To compute the Expected Value EV using decision tree analysis we nee... View the full answer