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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Landloc, a real estate development firm, is considering several alternative development projects. These include building and leasing an office building, purchasing a parcel ofland and building a parking lot, buying and leasing a warehouse, building a shopping mall, and building and selling
condominiums. The financial success of these projects
depends on interest rate movement in the next five years.
The various development projects and their five-year financial return ($ millions) given that interest rates will decline,
remain stable, or increase are shown in the following payoff table.
Determine the best investment using the following decision criteria.
a. Maximax
b. Maximin
c. Equal likelihood
d. Hurwicz ( 0.3)
Interest Rates
Project Decline Stable Increase
Office building 0.5 1.7 4.5
Parking lot 1.5 1.9 2.4
Warehouse 1.7 1.4 1.0
Shopping mall 0.7 2.4 3.6
Condominiums 3.2 1.5 0.6
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