Planning Function Management 2022

Answer 1
Part (i)
Plan A
40%
25000
00
40000
0
60%
80000
0
Plan b
30%
10000
00
50000
0
70%
50000
0
Plan C
No
tree

Part (ii)
Expected pay
off
Plan A
14800
00
Plan B
65000
0
Plan C 0
Part
(iii)
net expected
value
Plan A
10800
00
Plan B
15000
0
Plan C 0
Part (iv)
Decision tree shall help to analyse the situation in a better manner and take
rational decision that project A is more feasible as there is higher probablity
and expected value of earning good return. Further, there is no chance of
incurring loss or not incurring any profit