Given the following sequential decision tree, determine which is the optimal investment, A or B:

4 7

2 1

5 8

6 9

3

.40 $300,000

$60,000

$45,000

$75,000

.60

(–$20,000)

.30

.70 .20 $200,000

$70,000

$60,000

.80

(–$17,000)

.35 $105,000

$40,000

$55,000

$80,000

.65

(–$9,000)

.55

.30

.15 Investment A

(–$70,000)

Investment B

(–$50,000) LO.1