=9.31.* The Morton Ward Company is considering the introduction of a new product that is believed to have a 50–50 chance of being successful. One option is to try out the product in a test market, at an estimated cost of $2 million, before making the introduction decision. Past experience shows that ultimately successful products are approved in the test market 80 percent of the time, whereas ultimately unsuccessful products are approved in the test market only 25 percent of the time. If the product is successful, the net profit to the company will be $40 million; if unsuccessful, the net loss will be $15 million.