YOU SHOULD PROVIDE YOUR DECISION TREE HERE. YOU CAN UPLOAD IT HERE OR SUBMIT ON A PAPER.

John want to plan for 2023 and his next two years travel. There are two options that he thinks about them. The agency suggests two options as following

1. The first option is: He can pay 6000 dollars and enjoy one week resort now, one week in 2024 , and one week in 2025.
2. The second option is: He can pay the resort fee when he uses the resort in 2023, in 2024 and in 2025. The current price for the resort is 290 per night. For 2024, there is 70% probability of 40% increase in price and there is 30% chance of 20% decrease in price.

For the 2025, there is 80% chance of 30% increase in prices. There is also 20% chance of 5% decrease in prices.

The discount rate is 0.1

Find the Net Present Value of the second option and compare it with the first option to select the one with the lower total cost!