Determine Decision Strategies Based on Expected Value and on Expected

question 4

Essay

Determine decision strategies based on expected value and on expected utility for this decision tree.Use the following utility function:
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Definitions:

Major Repairs

Significant restorations or overhauls to equipment, buildings, or machinery that extend their useful life but are not considered routine maintenance.

Simple Rate Of Return

A metric used to evaluate the gain or loss on an investment relative to the amount invested, expressed as a percentage.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity level to meet short-term obligations and operations.

Annual Net Operating Cash Inflows

The total amount of money that flows into a business from its operational activities, after all operational expenses have been paid, over a one-year period.