3. Suppose you are working for IRR. Business School and are considering starting a case competition for students, in partnership with LLS Private Equity, a major donor. LLS will offer a $100,000 prize to the winning team of the competition. In addition, each member of the winning team will receive 2 years of employment with LLS at an annual compensation of $150,000. The winning team will transfer all intellectual property rights to their case idea to LLS. The business school will adminster the competition, solicit students and provide faculty to act as judges. There will be 3 faculty each of whom will spend 15 minutes per case to review and judge. Each faculty member will review all cases. The administrator will spend a total of 60 hours managing the competition. You expect that 1,000 students will sign up in groups of 4, so there will be 250 cases to review. Faculty will select a shortlist of 25 cases. Each student will spend a total of 40 hours preparing the cases. Assume the following amounts for the value of time spent: LLS expects there is a 4% chance that one of the shortlist cases will have a brilliant idea that LLS can subsequently utilize for a future venture investment. There is a 96% chance that the shortlist cases will have worthless ideas. There is a 5% chance that a brilliant idea will turn into a $1 billion value startup. There is a 95% chance that a brilliant idea will turn into a loss of $25 million. IRR will not receive any funds from LLS. Students will not pay to enter the competition. Upon graduation, with certainty, students can expect to find full-time jobs at the annual wage rate of $100,000. All $ amounts mentioned are in present values. (a) (5 points) What is the monetary value of time spent by each student preparing the cases. What is the total value of time spent by all students? (b) (5 points) What is the total monetary value of time spent by the administrator and faculty members on the competition? (c) (5 points) Calculate the net benefits to IRR from administering the competition. (d) (6 points) Calculate the expected net benefits to LLS from sponsoring the competition. (e) (5 points) Calculate the expected net benefits to an individual student from entering the competition. (f) (5 points) Calculate the expected net benefits to an individual student from the competition if they are shortlisted. (g) (5 points) Identify the net gainers and net losers from among LLS, IRR, all students and shortlisted student stakeholder groups. (h) (2 points) If you are a risk-averse student who believes you have an average chance at winning, would it make sense for you to enter the competition