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Please show all steps and explain Question 5: Dealing with Uncertainty [9.5 marks) You own a small software development company that develops software for cloud

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Question 5: Dealing with Uncertainty [9.5 marks) You own a small software development company that develops software for cloud encryption. Your new software contains several unique features that you have patented, so your future looks bright. However, recently you have learned that a large software firm MegaLoc has copied some of your patented features into a new software program that they are actively marketing. Since MegaLoc has annual sales revenue in excess of $1 Billion and a large marketing network this development may drive you out of business. You are investigating suing MegaLoc for Patent infringement. Attorney fees for going to trail (win or lose) is expected to be $1 million. You feel you have a 60% chance of winning the case and would receive $5 million in damages if successful. If you lose, you get nothing. There is also a 50% chance that if you lose the case, the court may make you pay the lawyer fees for MegaLoc (an additional $1 million). After filing for litigation MegaLoc has offered you $1.5 million to settle out of court. Use a fully labelled decision tree and expected value to determine if you should proceed with litigation

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