1 A wildcat oilman must decide how to finance the drilling of a new well. He has three options: a: Finance everything himself for a nett total cost (including interest charges etc.) of $100 000; he will then of course, retain all profits. a2: Take in a partner who will share equally in profits; his nett total cost will then be $30 000. a3: Obtain financing from an independent consortium; he will have no initial expenses and will receive 10% of profits for managing the venture. Profits are expected to be $4 per barrel of oil obtained from the well. Three possibilities (states of nature) exist: A1: The well is empty. Az: The well will produce 20 000 barrels of oil; As: The well will produce 50 000 barrels. Prior probabilities on these three states are assessed as follows: "(1) = 0.5; "(2) = 0.3; 7(3) = 0.2. Identify the oilman's optimal decision, and assess the corresponding EVPI