An art dealer’s client is willing to buy the painting Sunplant at $50,000. The dealer can buy the painting today for $40,000 or can wait a day and buy the painting tomorrow (if it has not been sold) for $30,000. The dealer may also wait another day and buy the painting

(if it is still available) for $26,000. At the end of the third day, the painting will no longer be available for sale. Each day, there is a .60 probability that the painting will be sold. What strategy maximizes the dealer’s expected profit?