not build the $20 million production facility. FIGURE 4.16 DECISION TREE FOR HEMMINGWAY, INC. million) and the cost of the production facility ( $20 million) show the profit of this outcome to be $59$5$20=$34 million. Branch probabilities are also shown for the chance events. What is the expected value of your strategy? Expected value =$ M b. What must the selling price be for the company to consider selling the rights to the product? Payoff for sell rights would have to be $ 1 or more. In order to recover the $5MR&D cost, the selling price would have to be $ 1 or more. c. Develop a risk profile for the optimal strategy. If required, round your answers to two decimal places