Question: You're trying to decide whether or not to start a company based on possible future revenues. You have the option to getadvice from an entrepreneur
You're trying to decide whether or not to start a company based on possible future revenues. You have the option to getadvice from an entrepreneur at a cost of $K The expected value of future revenues are given as follows: With advice option available at $K: $K With advice option available at no cost: $K Without advice option: $K With perfect advice: $KWould the optimal strategy involve getting advice from entrepreneur? Why?a No because EVPI$K and is higher than the cost of advice optionb No because EVSI$K and is less than the cost of advice optionc Yes, because EVSI$K and is higher than the cost of advice optiond Yes, because EVSI$K and is less than the cost of advice option
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