Given the decision tree below for a two-stage (decision) project to enter a joint venture, find the
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Given the decision tree below for a two-stage (decision) project to enter a joint venture, find the best alternatives (among a1-a6 in the figure) and their expected values. The outcomes shown are revenues and the investment expenses are in parentheses. Node 4 represents the situation where alternative a1 was chosen, and then the top outcome with a 70% probability occurred; note that there is no choice of alternative if the 30% probability outcome occurred. Similarly with Node5.
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Related Book For
Project Management A Managerial Approach
ISBN: 978-0470533024
8th edition
Authors: Jack R. Meredith, Samuel J. Mantel Jr.
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