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TourcompanyWantsTo decidedewweeninvestment, Which will CostToun upfront andInvestment, which will cost$150K upfront If theeconomy performswell, Investment will bring in $750K for your companybut if the economyperformspoorly

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TourcompanyWantsTo decidedewweeninvestment, Which will CostToun upfront andInvestment, which will cost$150K upfront If theeconomy performswell, Investment will bring in $750K for your companybut if the economyperformspoorly thenit will lose$250K for your company If the economyperformswell, Investment will bring in $850K for your companybut if the economyperformspoorly thenit will lose$300Kfor your company There se 60%% chanceof a strongmarketanda 409% chanceof aweakmarket a Assumingyour companys risk-neutral which option shouldyou choose (5 marks b. If the chanceof a strongor weakmarketchangeso 5050 whatis thenew best option? (3 marks) c If the costof investment is reducedto $100kdoesthis changeyour decision (2 marks) d. Critically evaluateheuseof decisiontreesfor decisionmaking (10 marks e Identify the waysby which quality of informationinfluencesdecisionmaking How canthis beimproved (5 marks Total 25 marke

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