Excel, Sequential Decision Tree Example

Excel, Sequential Decision Tree Example - 0.6 $490,000...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
$2,000,000 0.6 $1,290,000 Apartment Building $225,000 ($800,000) 0.4 Build apartments $1,160,000 ($800,000) $1,740,000 Land Sell Land ($200,000) 0.6 $1,360,000 Develop commercially 0.4 ($600,000) $790,000 Sell Land Growth No Growth Growth No Growth
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Decision Node Probability Node Payout $3,000,000 0.8 $2,540,000 $700,000 0.2 $450,000 $2,300,000 0.3 $1,390,000 $1,000,000 0.7 $210,000 Growth No Growth Growth No Growth
Background image of page 2
$1,200,000
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 0.6 $490,000 Apartment Building ($575,000) 0.4 Build apartments $1,160,000 $1,540,000 Land Sell Land 0.6 $1,160,000 Develop commercially 0.4 $590,000 Sell Land Growth No Growth Growth No Growth Decision Node Probability Node Payout $2,000,000 0.8 $1,540,000 ($300,000) 0.2 $250,000 $1,500,000 0.3 $590,000 $200,000 0.7 $10,000 Growth No Growth Growth No Growth...
View Full Document

This note was uploaded on 09/24/2010 for the course BU 628 taught by Professor Dr.tapp during the Spring '10 term at Georgian.

Page1 / 4

Excel, Sequential Decision Tree Example - 0.6 $490,000...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online