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A start-up company is looking to determine the best strategy for distributing its new product for the next ten years. Since the demand for its

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A start-up company is looking to determine the best strategy for distributing its new product for the next ten years. Since the demand for its new product is uncertain, the operations and logistics department has prepared a decision tree (in the appendix). The tree shows the annual operating costs, linked to transport, the probabilities of each possible scenario and has two decision points A and B. Decision A, to be made now - Buy now a small truck (cube type) at a cost of $80,000 and whose disposal value will be $20,000 in ten years; Or - Rent a larger truck (18-foot type) for a period of 10 years. Decision B, to be taken in three years, only if we choose in A to purchase a small truck (cube type) NOW. - Buy another small truck at a cost of $60,000 and whose disposal value will be $ 15,000 in 10 years. - Do not buy trucks, in which case you could rent a truck on an ad hoc basis depending on th needs. The company's TRAM is 10% and all amounts take taxes into account. Complete the decision tree at point A and show your calculations in the space provided

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