Question 1 After its recent failures in the financial sector, Citigroup decided to change course and look for new investment opportunities. It can invest in one of the following: (1) Oil drilling in the North Sea. An investment of 4MS is required. The possible outcomes: Al = Success - 10%. Expected revenue 20MS. A2 = Failure - 90%. Expected revenue 1MS. (2) Diamond mining in South America. An investment of 5M$ is required. The possible outcomes: B1 = Success - 30%. Expected revenue 15MS. B2 = Failure - 70%. Expected revenue 3MS. (3) Producing a new Angelina Jolie movie. An investment of 5MS is required. The possible outcomes: C1 = Success - 60%. Expected revenue 11MS. C2 = Failure - 40%. Expected revenue 2MS. In addition, there is a 10% chance of a revolution in South America. In that case, any investment there is lost (even if diamonds are found). a. Calculate the EMV. b. How much would the company be willing to pay for perfect information on A only? Diana Diamond can predict success in diamond mining. Her recommendations are YES (success) or NO (failure). It is known that: P(YES B1) = 0.9; P(NO B2) = 0.8