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Company SuperRich is considering the possibility of capacity expansion. The company has three options. The first is to build a small facility that it could

Company SuperRich is considering the possibility of capacity expansion. The company has three options. The first is to build a small facility that it could build at a cost of $5 million. If demand for new products is low, the company expects to receive $7 million in revenue with the small facility; if demand is high, it expects $12 million in revenues using the small facility. The second option is to build a large factory at a cost of $10 million. If demand is low, the company would expect $9 million in revenues with the large plant; if demand is high, the revenue is expected to be $20 million. In either case, the chance of high demand is 0.4 and low demand is 0.6. The third option is not to construct any new facility, which will lead to $5 million revenue regardless of the demand condition.
a. Construct a decision tree and conduct the analysis to help company SuperRich to make the best decision.

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