Problem: Blue Line Transportation (BLT) is bidding to construct the vehicles for the new LAX people mover. BLT estimates there will be a 10% chance that they are selected from the initial pool and invited to submit a full proposal. If they are invited to submit a proposal, it will cost them $20K in salary and other resources to prepare the proposal, and the contract is worth $900K if they are selected. Historically, there are 5 firms invited to submit a proposal for these types of projects, and each of the invited firms are equally likely to be the one selected for the contract. If BLT is invited and submits but is not selected then they receive no revenue for the work, and so they can elect not to submit a proposal if even they are invited from the initial pool.