AVARI RESORTS LEISURE After a period of consolidation in 2019, when the AVARI RESORTS Leisure group saw a big contraction in demand due to the world economic slowdown (Caused by the COVID-19 pandemic), the company is looking to increase its share of the upmarket, all-inclusive holiday resort market. Thirty years of providing holidays to high income European and North American consumers make AVARI Leisure one of the most prestigious brands in DUBAI. Despite the recession, the company performed fairly well in 2019. Profits fell 5%, but this compared favorably with the industry average profit decline of 9%. AVARI has attributed the group's relative success to the location of their resorts and the effective management of a team of people that have considerable knowledge and expertise in the market. The management team is not complacent, however. The chief executive officer, Dan Marone, thinks the company's concentration in DUBAI is a weakness because of competition from new holiday destinations in the UAE. Dan believes that the company needs to expand into some of the new destinations that its customers are interested in visiting. The directors are considering two options for 2020. The consultancy that produced the projected costs and profit data believe that there is a 80% chance of high demand and a 20% chance of low demand. OPTION 1 (DUBAI): OPTION 2 (OMAN): Projected profits based on demand ($m) Initial cost ($m) High demand (0.8) Low demand (0.2) 120 Option 1 Open another resort in Dubai 400 200 150 Option 2 500 Open a resort in OMAN 300 Q1. Calculate the expected values for each option