please draw the decision table also.. Trips Logistics, a third-party logistics firm that provides warehousing and other

[answerhappygod]

please draw the decision table
also..
Trips Logistics, a third-party
logistics firm that provides warehousing and other logistics
services, is facing a decision regarding the amount of space to
lease for the upcoming three-year period. 1,000 square feet of
warehouse space is required for every 1,000 units of demand, and
the current demand at Trips Logistics is for 100,000 units per
year. The manager forecasts that from one year to the next, demand
may go up 20 percent with a probability of 0.6 or go down by 20
percent by a probability of 0.4. The probabilities of the two
outcomes are independent.
The manager can sign a three year
lease at a price of 1 dollar per square feet per year or obtain the
warehouse space from sport market with 1.2 dollar per square feet
per year. From the current year to the next year, spot prices for
warehouse space may go up by 12% with probability 0.45 or go down
by 12% with probability 0.55. The probabilities of the two outcomes
are independent.
The manager believes that the process
of warehouse space and demand for the product fluctuate
independently. Each unit Trip Logistics handles results in revenue
of 1.8 dollar. Trips Logistics uses a discount rate of k=0.06 for
each of the three years.
Question:
[1] Please evaluate the spot market
option, i.e., calculate the overall profit obtained with not
signing a lease and obtaining all warehouse space from the spot
market.
[2] Please evaluate a flexible lease option: the company has the
flexibility of using between 85,000 sq ft and 105,00 sq.ft at 1
dollar per sq. ft. This means The company must pay for the first
85,000 sq. ft and can the use up tp another 20,000 sq.ft at 1
dollar
please draw the decision table also..