You run a contract research organization $($CRO$)$ and rely heavily on government contracts for your revenue. A new request for proposals $($RFP$)$ just came out to evaluate North Carolina's school nutrition program that would leverage your company's expertise in program evaluation. The state will take bids now from a limited number of organizations $($including yours$)$ and open the bidding again in $6$ months once the background data on the nutrition program is available. You must choose between bidding now or waiting $6$ months then deciding what to do$.$

If you bid now, it will cost your organization $$25,000$ in resources just to prepare the proposal. Once submitted, you have a $15\%$ chance of winning the full contract, a $30\%$ chance of winning a subcontract, and a $55\%$ chance of losing the bid.

If you wait $6$ months you can decide to either bid on the project or forego bidding altogether. Since you will have more information to rely on at that time, preparing the proposal after $6$ months will only cost your organization $$5,000.$ However, due to increased competition, your chances of winning the full contract after $6$ months are lower $(10\%),$ while your chances of winning the subcontract are slightly higher $(35\%).$ The chance of losing the bid remains $55\%$ at that time.

Regardless of when you bid, winning the full contract results in $$450,000$ awarded to your organization from the state, and winning the subcontract results in $$95,000$ awarded to your organization from the state. Losing the bid results in no award $($ $$0).$ You must build a decision tree to help make a good decision. Although this may look like a one$-$time

decision, we will assume your organization must make similar decisions repeatedly over time under similar conditions.

$1.$ How many terminal nodea are there in this problem? Show in excel.

$2.$ How many event nodes are there in this problem? Show in excel.

$3.$ What value would a payoff matrix indicate based on budding now and winning the subcontract? Show in excel.

$4.$ If you choose to wait $6$ months, what is the expected konetary value of deciding to forego bidding altogether? Show in excel.

$5.$ What is the expected monetary vlaue of bidding now? Show in excel.

$6.$ What is the expected konetary value of waiting $6$ months then bidding? Show in excel.

$7.$ What dollar value $($emv$)$ separates the decision to bid now from the decision to wait $6$ months? Show in excel.

$8.$ What course of action would you take based off the decision tree?