An Art dealer's client is willing to buy the painting RainDane at $50,000. The dealer can buy the painting today for $40,000 or can wait a day and buy the painting tomorrow (if it has not been sold) for $30000. The dealer may also wait another day and buy the painting (if it is not available) for $26000. At the end of the third day, the painting will no longer be available for sale. Each day, there is a 0.60 probability that the painting will be sold.
A. What is the Expected Monetary Value (EMV) at each step? What strategy maximizes the dealer's profit?