A construction company is confronted with planning its marketing strategy over the next

five$-$year period. Forecasts for national economy are good, and the company planners

assess that there is a $0\mathrm{.}80$ probability of high growth in the demand for construction work

and $0\mathrm{.}20$ probability of low growth.

The ability of the company to increase turnover depends largely upon the state of the

market, but its market share can be improved by investing in more facilities. The latter

situation is possible either by setting up new divisions immediately or a more gradual

expansion of the existing facilities to suit the market conditions. The planners, after

carrying out investment appraisals on alternative strategies, calculate the profitability of

the company as follows: