Question: Landloc, a real estate development firm, is considering several alternative development projects. These include building and leasing an office building, purchasing a parcel of land and building a parking lot, buying and leasing a warehouse, building a shopping mall, and building and selling condominiums. The financial success of these projects depends on interest rate movement in the next five years. The various development projects and their five-year financial return ($ million) given that interest rates will decline, remain stable, or increase are shown in the following pay-off table.

Determine the best investment using the following decision criterion.

a. Maximax

b. Maximin

c. Equal likelihood