A firm is considering investing in one of two stocks, Energy Stock or Healthcare Stock. They may also cancel their plan of investing if both investments result in losses. The return from each investment depends on whether the global economic condition is good or poor as shown in the following payoff table:

i) Determine the expected monetary value (EMV) for each investment. Which investment gives the highest payoff? (3 marks) ii) An economic expert has the information on which global economic condition that is very certain to happen. He offered the firm the information but with a price of RM 10,000. Is it worth for the firm to purchase the perfect information? (2 marks)

Market Conditions Stocks Good Fair Poor Energy 125000 60000 - 20000 Healthcare 175000 85000 - 45000 0 0 0 Do Nothing Probability 0.45 0.30 0.25