Excel, Sequential Decision Tree Example

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

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\$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

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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
\$1,200,000

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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...
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## 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.

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

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