h.- Suppose that there is a choice to make between three lands to purchase. Land-A purchase price is $150K. Land-B purchase price is $120K but there is a 30% chance that some extra administrative tasks at a cost of $40K will be needed. Land-C purchase price is $80K but there is a 70% chance that you need to construct a road with an estimated cost of $80K. Develop a decision tree to estimate the final costs for each of the lands. Which land you would recommend?

h.- Suppose that there is a choice to make between three lands to purchase. Land-A purchase price is $150K. Land-B purchase price is $120K but there is a 30% chance that some extra administrative tasks at a cost of $40K will be needed. Land-C purchase price is $80K but there is a 70% chance that you need to construct a road with an estimated cost of $80K. Develop a decision tree to estimate the final costs for each of the lands. Which land you would recommend?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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