John is considering bidding against Dave for an endorsement contract. He estimates it will cost $ 1 million to prepare the demo that must accompany the bid. The profitability of the contract depends on the bid price John submits. He could choose to bid $ 8 million, $ 5.75 million, $ 5 million or not bid at all. The chance events are the Dave does not bid lower then $ 8 million, $5.75 million, or $ 5 million or that his bid is lower than $ 5 million. Assume that it will cost John $ 3 million to produce his endorsement.

Construct a payoff matrix whose entries are John's profit.