pls solve problem

Mickey Mouse is considering investing some money that he inherited. The following payoff table gives the prots (in RMB) that would be realized during the next year for each of the three investment alternatives Mickey is considering. What decision would maximize expected profit? Do a sensitivity analysis. Discuss your solution and answer. Alternative / SOW Good Economy Poor Economy Stock market 80,000.00 -20,000.00 Bonds 30,000.00 20.000.00 CDs 23,000.00 23.000.00 Probability 0.5 0.5 Sarah Crewe is considering whether to build more manufacturing plants in China. Her decision is summarized below. What is the best decision? Do a sensitivity analysis. Discuss your solution and answer. Alternative / SOW Favorable Market (USD) Unfavorable Market (U SD) Build a large plant 400.000.00 300.000.00 Build a small plant 80,000.00 -10,000.00 Don't build 0 0 Probability 0.4 0.6 Donald Duck has always been proud of his personal investment strategies and has done very well over the past several years. He invests primarily in the stock market. Over the past several months, however. Donald has become very concerned about the stock market as a good investment. In some cases, it would have been better for Donald to have is money in a bank than in the market. During the next year, Donald must decide whether to invest USD 10,000.00 in the stock market or in a certicate of deposit (CD) at an interest rate of 9%. If the market is good, Donald believes that he could get a 14% return on his money. With a fair market. he expects to get an 8% return. If the market is bad. he will most likely get no return at all. Donald estimates that the probability of a good market is 0.4, the probability of a fair market is 0.4, and the probability of a bad market is 0.2. and he wishes to maximize his long-run average return. a. Develop a decision tree for this problem. What is the best decision? b. Donald is now thinking about paying for a stock market newsletter. His friend said that these types of letters could predict very accurately whether the market would be good, fair, or poor. Then. based on these predictions, Donald could make better investment decisions. i. What is the most that Donald would be willing to pay for a newsletter? ii. Donald now believes that a good market will give a return of only 11% instead of 14%. Will this information change the amount that Donald would be willing to pay for the newsletter? If your answer is yes, determine the most that Donald is willing to pay. given this new information