Create a decision tree analysis, and be able to reduce cost on local taxes, it is assessing if it is beneficial for the branch office to Philippine Economic Zone Authority PEZA registered company.

Which among the four options will give the best Expected Monetary Value?

G H L M N o P Q R 49 Outcome - net benefit (costs) - using 10 years 50 Options Successful registration Unsuccessful registration Not register 51 without expert with expert without expert with expert 52 Not register 53 Register - no expert 93,026,400.00 54 Register - with expert 88,726,400.00 55 Unsuccessful registration - no expert -73,600.00 Unsuccessful registration - with expert -373,600.00 Option 1: Register no expert using 10 years: Registration fee PEZA (service, non-pioneer) -3,600.00 one time Admin salaries for the preparation of initial requirements for PEZA -70,000.00 one time 61 Admin salaries for the preparation of regular requirements for PEZA after a successful registration -1,400,000.00 52 Tax savings: 53 Regular corporate income tax 77,500,000.00 64 Corporate income tax rate the preferential tare 68,000,000.00 9,500,000.00 (may change depending ont he actual tax base) 65 Savings on VAT as zero rated entity 00,000.00 for Input VAT, the company has no output VAT 56 Other savings and incentives 30,000,000.00 67 68 Estimated net benefit 93,026,400.00 69 70 Option 2: Register with expert using 10 years: 71 Registration fee PEZA (service, non-pioneer) -3,600.00 one time 72 Admin salaries for the preparation of initial requirements for PEZA -70,000.00 one time 73 Admin salaries for the preparation of regular requirements for PEZA after a successful registration -1,400,000.00 74 Tax savings: 75 Regular corporate income tax 77,500,000.00 76 Corporate income tax rate the preferential tare 68,000,000.00 9,500,000.00 (may change depending ont he actual tax base) 77 Savings on VAT as zero rated entity 55,000,000.00 annually for Input VAT, the company has no output VAT 78 Other savings and incentives 30,000,000.00 annually 79 Estimated net benefit before professional fees 93,026,400.00 81 32 Professional fees for the assistance in the preparation of initial requirements for PEZA -300,000.00 one time Professional fees for assistance in the preparation of regular requirements for PEZA after a successful registration -4,000,000.00 quarterly Estimated net benefit before professional fees 88,726,400.00 Option 3: Unsuccessful registration no expert 89 Registration fee PEZA (service, non-pioneer) -3,600.00 one time 90 Admin salaries for the preparation of initial requirements for PEZA -70,000.00 one time 92 Estimated net benefit/cost -73,600.00 93 94 4. Option 4: Unsuccessful registration with expert 95 96 Registration fee PEZA (service, non-pioneer) -3,600.00 one time 97 Admin salaries for the preparation of initial requirements for PEZA -70,000.00 one time 98 99 Estimated net benefit/cost -73,600.00 100 101 Professional fees for the assistance in the preparation of initial requirements for PEZA -300,000.00 one time 102 103 Estimated net benefit/cost 373 600 00