Transrail is bidding on a project that it figures will cost $400,000 to perform. using a 25% markup, it will charge $500,000, netting a profit of $100,000. however, it has been learned that another company, rail freight, is also considering bidding on the project. if rail freight does submit a bid, it figures to be a bid of about $470,000. transrail really wants this project and is considering a bid with only a 15% markup to $460,000 to ensure winning regardless of whether or not rail freight submits a bid.

a. prepare a profit payoff table from transrail's point of view.
b. what decision would be made if transrail were conservative?
c. if rail freight is known to submit bids on only 25% of the projects it considers, what decision should transrail make?
d. given the information in (c), how much would a corporate spy be worth to transrail to find out if rail freight will bid?