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You are responsible for constructing a new building. The building will have 10 floors. You are considering modifying the design of the structure with extra

"You are responsible for constructing a new building. The building will have 10 floors. You are considering modifying the design of the structure with extra steel, utilities, and elevator shafts so that it will be easier to double the height of the building to 20 floors (after the building is constructed). You need to decide whether to modify the design of the building before the building is constructed. When the building is built with 10 floors, there will either be 200 occupants or 100 occupants. There is a 0.64 probability that there will be 200 occupants. If there are 100 occupants, your company will never choose to make the building taller. If there are 200 occupants, your company may decide to double the height of the building (to 20 floors). If the building is doubled in height, there is a 0.38 probability the building will have 400 total occupants and a 0.62 probability the building will have 300 total occupants. The annual revenue for the company depends on the number of occupants in the building: the annual revenue for 100, 200, 300, and 400 occupants is $100,000, $200,000, $300,000, and $400,000, respectively. NOTE: If there are originally 200 occupants and the building's height is doubled, assume the annual revenue of the company is either $300,000 or $400,000. DO NOT ADD $200,000+$300,000 or $200,000+$400,000. The cost for the company depends on whether the design is modified and whether it chooses to double the height of the building. The annualized cost to modify and double the height is $130,000. The annualized cost to modify the building and not double its height is $100,000. The annualized cost to double the height without modifying the design is $150,000. The annualized cost of neither modifying nor doubling the height is $80,000. Your company follows the delta property and is risk averse with a risk tolerance of $680,000. What is the company's value of clairvoyance on the uncertainty over whether there will initially be 200 or 100 occupants in the building?"

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