JTM really liked your work on the option pricing of the gates, so they ask you to look at their 3-phase expansion at their home airport. The three phases are:

a. Upon purchase of the new gates, start a marketing program to promote JTM's routes to the East Coast, West Coast, and the Caribbean. If all goes well and the market is receptive, they will go on to phase 2.

b. Phase 2 has JTM invest in new routes to the three sets of destinations listed. If at any time, JTM finds that this is not going to work, they will pull the plug on phase 2 and scratch the project.

c. Phase 3 has JTM start the new routes to the destinations listed. If things don't go well on any of the three destinations, they will pull the plug on phase 3 and scratch that destination out. After much work with other departments, you generate enough data to calculate the NPV of the 3-phase expansion. Before you have a chance to save all your work, there is a power spike in the building, and you lose part of your work. You have to go back and complete it so you can present it to your manager.

Please show excel formulas used

A B D E F G J K L M N O 1 2 H JTM Airlines Airport Expansion Expected Value Start Phase I Phase II PV of Revenues Costs 300 Net 3 4 Probability Phase III Success 70% 5 35 o East Coast 50 25% Failure 30% 10 200 Success 65% 35 West Coast 25% 50 Failure 35% 10 Success 70% 30 300 Success 75% 35 3 9 0 1 2 3 4 _5 6 7 8 9 20 21 22 23 24 ES 26 27 28 -9 -0 1 2 3 -4 Caribbean 25% 40 Start Failure 25% 20 10 Failure 25% 10 Failure 30% 10 0.0%