Decision attributes

Outcome

Probability

Conditional value

in million dollar

Expected value in

million dollar

D3 (i) Modernize

5%of return

0.45

600 × 0.05 = 30

13.5

8% of return

0.55

600 × 0.08 = 48

26.4

D2 (i) New Airport construct

Success

0.75

800

600

Failure

0.25

200

50

650

(ii) Develop Existing

Success

0.85

700

595

Infra

Failure

0.15

350

52.5

647.5

D1 (i) if not constructed

5% of returns

0.45

600 × 0.05 = 30

13.5

8% of returns

0.55

600 × 0.08 = 48

26.4

39.9

(ii) If constructed

Success

0.65

650 + 647.5

843.375

Failure

0.35

39.9

13.965

857.340

(−) 600.000

257.34