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You must provide work and support your answers. Label your answers clearly. Your firm is considering three investment projects: A, B, and C. Given the

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You must provide work and support your answers. Label your answers clearly. Your firm is considering three investment projects: A, B, and C. Given the budget constraints, you must choose one! Project A will provide a net return of either $100,$50, or $60, respectively, depending on whether there will be a boom, normal conditions, or a recession. The figures for Project B are $50,$45, or $40, respectively. Project C has returns of $70,$40, and $10, respectively. Forecasts indicate that, given the current trends in appropriate economic indicators in the following year the chances (fi) are 60% that a boom will occur, 20% that the economic conditions will stay as they are, and 20% that the economy will be in a recession. 1. Construct a payoff table. nopoints) 2. If there were an uncertain decision situation rather than one under risk, what would your choice be under the condition of perfect optimism (MXMX), perfect pessimism (MXMN), optimism at 0.7 2. If there were an uncertain decision situation rather than one under risk, what would your choice be under the condition of perfect optimism (MXMX), perfect pessimism (MXMN), optimism at 0.7 (REAL'SM), Equal Likelihood, and minimization of Regrets? (ooponts) 3. What is the expected value (xbar) and ( Sigma) of each alternative in DMUR? Which alternative must you choose from each point of view? (20pantst) 4. Which project should be chosen on the basis of the calculation of Coefficient of Variation? (opanite) 5. Calculate the probability of making at least $50 net return. Which investment is the best? ropointa) 2. DMUU: Sfow all your work and Summarize below: DMUU RESULTS - be sure to have a Recap - Table Summary - and Final Conclusinn writh DMUR RESULTS - be sure to have a Recap - Table Summary - and Final Concluni_. ... USE this format for DMMUR USE tfis format for DMU DR

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