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Question Tree: 5 Marks) 1- Find the payback period (2.5 Marks) $50k $50K $50k $50K $50k $ 200k 2- A company is deciding whether to bid for a certain project or not. They estimate that merely preparing the bid will cost $5,000. If their company bid then they estimate that there is a 50% chance that their bid will be put on the "short-list", otherwise their bid will be rejected. Once "short-listed" the company will have to supply further detailed information (entailing costs estimated at $5,000). After this stage their bid will either be accepted or rejected. They are considering three possible bid prices, namely $115,000, $130,000 and $150,000, including the decision to abandon the bid. They estimate that the probability of these bids being accepted (once they have been short-listed) is 0.90, 0.75 and 0.35 respectively. The company estimate that the labour and material costs associated with the contract are $87,000. What should the company do and what is the expected monetary value of your suggested course of action? (7.5Marks)