BUSINESS
Decision Tree and Value of Information.pptx

Decision Tree and Value of Information.pptx - DECISION TREE...

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DECISION TREE AND VALUE OF INFORMATION BUS520 Business Analytics and Decision Making (2018JAN02FT-1) Rey D’Angelo
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Background In this report, I will determine the Expected NPV of the decision if I was to consult the expert. I will also determine if consulting the expert will increase the value of my analysis. I have reviewed all of the possible data for the next 10 years. Each investment requires a different initial investment amount. In this report I will be analyzing the Expert that I have heard of with a track record of high confidence in correctly identifying when market conditions are favorable or not. I will be considering whether or not to consult this expert, and if it would be worth paying his fee to get his prediction.
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Background (con’t) I will analyze the information that the expert provide a little further to determine the value. Most important is weather the market will be Favorable or Unfavorable.
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Option A: Real Estate Development Risky opportunity with the possibility of a high payoff.
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