You are in charge of the environmental policy division of a local non-profit. Suppose

that you are only allowed to apply for a special cleanup grant once, and you have just

been awarded a grant worth $160,000. You are given the choice to take this money now

or wait until next year, and see how much money is available next year. Since next year

new government officials may be in place, you may want to wait to see if there is more

money. Assume that $1 today is equivalent to $1 next year. There are three possible

outcomes:

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