You have been asked to use decision tree analysis with EMV to assess the risk in selecting among three different projects, each with unique expenses, risks, and expected monetary outcomes, with estimates shown below:

a. Draw a decision tree analysis chart with values from the above table, filling in the amounts for EMV totals.
b. Which project presents the best alternative, based on this information, for a risk-averse organization?
c. Which project presents the best alternative, based on this information, for a risk-seeking organization?

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Probability/Outcome Complete Success Probability/Outcome Partial Success Probability/Outcome Complete Failure 40% / $65,000 30% / $70,000 70% / $80,000 Project 1 Project 2 Project 3 2090 / $60,000 15% / $75,000 40% / $50,000 5596/ $35,000 20% / $75,000 %150,000