We have two investments that we can make (Plan A and Plan B). The negative values along the initial branches represent the cost of implementing each plan ($200 for A and $400 for B). The round nodes represent the potential outcomes and the values on each branch is the pay-off for each outcome and plan combination. For instance, if we choose Plan A (and incur the $200 investment cost), an outcome of S1, with 0.4 probability, would give us a return of $700 so that the net benefit would be $700-$200 = $500. Note that the payoff for Plan A, S3 is missing (XXX). Plan A -$200 $700 0.40 S2 $500 0.40 S3 XXX 0.20 S1 Plan B -$400 $1,200 0.40 S2 $600 0.40 S3 $300 0.20 The optimal decision would be if XXX is O Plan A. 400 Plan A, 550 Plan A, 450 Plan B, 700 Plan B, 600 If XXX = $700, what is the Expected Value of Perfect Information (EVPI)? 120 O 540 None of the others. O 140 80 We have two investments that we can make (Plan A and Plan B). The negative values along the initial branches represent the cost of implementing each plan ($200 for A and $400 for B). The round nodes represent the potential outcomes and the values on each branch is the pay-off for each outcome and plan combination. For instance, if we choose Plan A (and incur the $200 investment cost), an outcome of S1, with 0.4 probability, would give us a return of $700 so that the net benefit would be $700-$200 = $500. Note that the payoff for Plan A, S3 is missing (XXX). Plan A -$200 $700 0.40 S2 $500 0.40 S3 XXX 0.20 S1 Plan B -$400 $1,200 0.40 S2 $600 0.40 S3 $300 0.20 The optimal decision would be if XXX is O Plan A. 400 Plan A, 550 Plan A, 450 Plan B, 700 Plan B, 600 If XXX = $700, what is the Expected Value of Perfect Information (EVPI)? 120 O 540 None of the others. O 140 80