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6) Below is a payoff table that lists tour mortgage options. The nunibers in the table represent borrowing costs. All the decision analysis questions that
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Below is a payoff table that lists tour mortgage options. The nunibers in the table represent borrowing costs. All the decision analysis questions that deal with mortgage options are based on this narration, i.e., you may reuse the model and the resulting solution to answer related questions. Outcome Decision Alternative Rates Rise Rates Stable Rates Fall 1syearARJA $66,645 $43,650 $36,560 307year fixed 552,276 $52,276 $52,276 The probability of rates rising is 0.52, rates stable is 0.33, and rates falling is 0.15. f there was a possibility for the decisionsniaker to get perfect in ormation before sfhe makes the decision, what is the expected value of the perfect information (EVPI)? A, $8,58i 3' 552:121 C.$5,048 D.547,072Step by Step Solution
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