The proposed site is near the rail terminal but state

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Reference no: EM13471355

A commercial real estate company is evaluating a proposed warehouse. The proposed site is near a rail terminal, but the state government may extend the highway to the area. In addition, the federal government is considering rebuilding the local port facilities. Below is the payoff table in monthly profit depending upon what government actions are taken.Based on the following criteria, what are the correct choices for terminal rental?

(a) Optimistic or maximaxcriterion

(b) Pessimistic or maximin criterion

Warehouse size (ft²)	Development projects
Warehouse size (ft²)	Rail terminal only	Highway expansion	Port rehabilitation	All
15000	10	25	35	40
30000	15	25	40	50
60000	20	30	45	75
100000	15	20	40	90

Reference no: EM13471355

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