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1 (18 Marks: 33 minutes) Sizabantu Trading is considering whether to develop and market a new product. The development costs are estimated to be R1800000,

1 (18 Marks: 33 minutes) Sizabantu Trading is considering whether to develop and market a new product. The development costs are estimated to be R1800000, and there is a 0,75 probability that the development effort will be successful. If the development is successful, the product will be $2 marketed and is estimated that 1) if the product is very successful profits will be R5 400000 ; 2) if the product is moderately successful profits will be R1 000000 and if the product is a failure, there will be a loss of R4 000000 . Each of the above profit and loss calculations is after taking into account the development costs of R1 800000 . The estimated probabilities of each

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