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can you draw the decision tree please A $10 mill initial investment allows Lasco Co Ltd an option to be exercised at the end of
can you draw the decision tree please
A $10 mill initial investment allows Lasco Co Ltd an option to be exercised at the end of two years to outsource the manufacturing of toothpastes or to continue with in-house manufacturing. If the company decides to outsource at the outset there is a: 0.3 probabilities that revenue will be high 0.5 probabilities that revenue will be medium 0.2 probabilities that revenue will be low If the company manufactures toothpaste in-house there is a: 0.4 probabilities that revenue will be high 0.2 probabilities that revenue will be medium 0.4 probabilities that revenue will be low NB. Total Projected Revenue =$10M At the end of year 2 the company must decide whether to continue to manufacture toothpaste in-house (where revenue will continue to be high, medium, or low), or to outside from another supplier within the same industry. Required: Construct the decision tree on the basis of the information provided by LascoStep by Step Solution
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