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noel_decision_tree_week5.docx

Decision Tree

Noel Jack

HIBISCUS PROPERTIES, INC.

Week 5

Get 2 investors 10%

$40k

high demand

1% fees

$20k

$0k

do nothing

4 Bedroom

Get Investors

Get 1 investor 12%

40k

do nothing

3 bedroom

low demand

0k

Get 2 investors 5%per

$50k

high demand

get 1 investor 15%

$30k

DECISION TREE

At the time my small company, Hibiscus Properties, Inc. was trying to increase the size of the Organization and we were buying as many properties as possible to repair them and rent and sell them after the market had turned up. The company had just started operating and had decided to bring in investors to help fund our acquisitions. The decision at this time was to expand the business as fast as possible and also the decision was whether we should buy the 4 bedroom or 3 bedroom property taking into consideration the payments to the investors and also to encourage investors to do business with us now and in the future. Thanks for your input.