Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $\backslash (\backslash$$ $6\backslash )$ million. If demand for new products is low, the company expects to receive $\backslash (\backslash$$ $10\backslash )$ million in discounted revenues $($present value of future revenues$)$ with the small facility. On the other hand, if demand is high, it expects $\backslash (\backslash$$ $12\backslash )$ million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $\backslash (\backslash$$ $9\backslash )$ million. Were demand to be low, the company would expect $\backslash (\backslash$$ $10\backslash )$ million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $\backslash (\backslash$$ $14\backslash )$ million. In either case. the probabilitv of demand beina hiah is $40.$ and the orobabilitv of it beina low is $60.$ Not constructina a new factorv would result in no additional revenue beina aenerated because the current