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Question: William is a private equity guru. One year ago, the owners of a troubled retail company accepted William's buyout offer of $15M. At the time, William's PIBP for the company was $30M. William worked very hard to restructure the company over the past year, but, unfortunately, the company went bankrupt. The following statements are thoughts that William had after the bankruptcy.

How many of them do not violate the principles of decision analysis?

I. I have the chance to invest an additional $1M in order to earn $3M extra on the liquidation of the
company's assets. However, I shouldn't make such an investment because it won't fully recoup my $ 15M original investment.

II. I am very unhappy with the bankruptcy, but I still feel like the buyout was a good decision.

III. I should remember this outcome and learn from it so it will help make future investment decisions.

a. 0

b. I

c. 2

d. 3

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