A firm is in the new technology business of developing fuel cells for use in automobiles. Based on the news broadcasts, the federal government has great interest in this technology, since it would reduce demand for oil and also greatly reduce air pollution from automobiles. Given the federal government's current attitude toward providing tax incentives to firms in different high technology area, a firm is considering a major investment in research to speed up the pace at which prototype fuel cells might be tested in automobiles. There are three levels of research investment under consideration by the firm: Current funding, Increased funding, Aggressive funding. The payoffs from the different levels of investment are dependent upon the size of potential tax incentives that the federal government might offer to support such research. There are three possible levels of tax incentives that can occur, with given assessed probabilities: No Incentive (.30), Moderate Incentive (.50) and High Incentive (.20). The associated payoff are: No Incentive (.30) Moderate (.50) High Incentive (20) 225 230 285 C- Current funding 175 I- Increased funding 165 A- Aggressive funding 115 200 230 180 A. Ignoring the risk probabilities, what alternative is selected by MAXIMIN Payoff? Enter C, I, or A A B. Ignoring the risk probabilities, what alternative is selected by MAXIMAX Payoff? A Enter C, I, or A C. Ignoring the risk probabilities, what alternative is selected by MINIMAX Regret? A/ Enter C, I, or A D. Find each of the Following Expected Monetary Values EMV(Current) == EMV (Increased) = EMV(Aggressive) = N A A/ EMV(Current) == EMV(Increased) = EMV(Aggressive) = F. What is the expected value of perfect information in this situation? EVPI = E. What alternative is selected by the Expected Monetary Value Criterion? A Enter C, I, or A A A/