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nts Book t A builder has located a piece of property that she would like to buy and eventually build on The land is currently zoned for four homes per acre but she is planning to request new zoning What she builds depends on approval of zoning requests and your analysis of this problem to advise her With her input and your help the decision process has been reduced to the following costs alternatives and probabilities Cost of land 2 million Probability of rezoning 0 60 If the land is rezoned there will be additional costs for new roads lighting and so on of 1 million If the land is rezoned the contractor must decide whether to build a shopping center or 1 450 apartments that the tentative plan shows would be possible If she builds a shopping center there is a 60 percent chance that she can sell the shopping center to a large department store chain for 5 million over her construction cost which excludes the land and there is a 40 percent chance that she can sell it to an insurance company for 4 million over her construction cost also excluding the land If instead of the shopping center she decides to build the 1 450 apartments she places probabilities on the profits as follows There is a 60 percent chance that she can sell the apartments to a real estate investment corporation for 2 000 each over her construction cost there is a 40 percent chance that she can get only 2 400 each over her construction cost Both exclude the land cost If the land is not rezoned she will comply with the existing zoning restrictions and simply build 400 homes on which she expects to make 3 500 over the construction cost on each one excluding the cost of land a What is the expected value for the rezoned shopping center if the rezoning cost is included but land cost is excluded Do not round your intermediate calculations Enter your answers in millions rounded to 2 decimal places Negative amounts should be indicated by a minus sign Expected value pected value wwwwwwww million What is the expected value for the rezoned apartments if the rezoning cost is included but land cost is excluded Do not round our intermediate calculations Enter your answers in millions rounded to 2 decimal places Negative amounts should be indicated wa minus sign million

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