Global Studios is thinking of producing a megafilm, Aqua World,which could be a megahit or a megaflop. Profit is uncertain because of two reasons: (1) the cost of producing the firm may be low or high, and (2) the market reception for the film may be strong or weak. There is a 0.5 chance of low cost (C) and a 0.5 chance of high costs. The probability of strong demand (D) is 0.4; the probability of low demand is 0.6. The studio's profits (in millions of dollars) for the four possible outcomes are shown in the table

\fThe studio is concerned that Kevin Costmore, the film's director and star, might let production costs get out of control. Thus, the studio insists on a clause In the production contract giving it the right to terminate the project after the first $30 million spent. By this time the studio will know for certain whether total production costs are going to be low or high. 4. Draw the new decision tree for Global Studios. (Hint: the studio's decision node about whether to exercise the termination clause should appear after the chance node about production cost) 5. Assuming Global Studios is risk neutral, should the studio produce the film? 6. Assuming Global Studios is risk averse, should the studio produce the film