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I need help with this practice question 28 by explaining the steps to figuring out the correct question. Answer questions 27 and 28 based upon

I need help with this practice question 28 by explaining the steps to figuring out the correct question.

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Answer questions 27 and 28 based upon the decision tree illustrated below. The dollar amounts stated a: received\" at each associated outcome. Assume that the decision make is trying to maximize expected utili preferences consistent with the Bernoulli Utility Function u(x) = J; . Firm 2 is trying to get chosen t producer of a component by Firm Y. Firm 2' has an initial decision to either \"Continue tidal)\" or \"Aband This 3&0 will be either a \"Success\" or \"Failure.\" Aer realizing either successful or failed 3&0, Firm 2 make a proposal (\"Prqoosal to Firm 1" or not (\"No Proposal \") lf they choose to make a proposal they wi. chosen as the sole supplier of this component (\"Win \") or not chosen ( \"Lose \".) Win 27. 28. $902,5' Proposal Success Continue R&D $70,225 5w No Proposal $70,225 Suppose \"p" is equal to .40. The value of \"W' which makes the rm indifferent between choosing R&D\" and \"Abandon MD\" is (i.e., the rm would want to choose \"Continue R&D\"' if \"W\" is less than or equal to J. A. $93,636 B. $96,100 C. $161,604 D. $198,500 Suppose \"W\" is equal to $81,796. The value of \"p\" which makes the rm indifferent betweei \"Continue R&D\" and \"Abandon MD" is (i.e., the rm would want to choose \"Contim and only if \"p\" is greater than or equal to l. A. .20 B. .25 C. .30 D .35

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