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Solutions:

5) E (S) = 489,000 We will go with the decision of building small factory.

6) EVP (shopping Mall) = $ 1.3 million We will go with the decision of building shopping mall if rezoning is done. If Rezoning is not done, we have no choice but to build 600 homes as already planned. EVP (600 homes) = $0.4 Million

Answer Class Problem) a) EVWI = 435,000 b) EPPI = 457,500; EVPI = 22,500 c) EPII = 440,350; EVII = 5,350

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