BakerVille is considering investing in three mutually exclusive investment projects. The cashflows from each project is dependent upon the market conditions that prevail over the life of the project. If the market conditions are POOR during the life of the projects, there is a $20\%$ probability that Project A would return $550,000$; Project B would return $300,000$; and Project C would make a loss of $800,000$ If the market conditions are AVEARGE during the life of the projects, there is a $45\%$ probability that Project A would return $900,000$; Project B would return $1,000,000$; and Project C would return $1,500,000.$ If the market conditions are GOOD during the life of the projects, there is a $35\%$ probability that Project A would return $1,500,000$; Project B would return $2,600,000$ and Project C would make a loss of $5,000,000$ YOU ARE REQUIRED TO: A$.$ Prepare the payoff table showing clearly the cashflow for each project with all possible combination of market conditions. $4$ marks B$.$ Using the payoff table prepared above, make a recommendation on the most suitable project to undertake using the following decision criteria: $$ Maximax $$ Maximin $$ Minimax regret $$ Expected Values $16$ marks C$.$ Discuss the difference between Sensitivity and Scenario Analysis as methods of dealing with risk. $5$ marks Assignment Brief Template Page $10$ of $12$