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Prince, Inc., a successful east coast firm, is considering opening a branch office on the west coast in British Columbia. Under normal economic conditions, with

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Prince, Inc., a successful east coast firm, is considering opening a branch office on the west coast in British Columbia. Under normal economic conditions, with a 45% probability of occurring, Prince can expect to earn a net income of $50,000 per year. In a mini recession, at 25% probability, Prince will earn $20,000. In a severe recession, at a 20% probability, Prince will lose $10,000. There is also a slight probability (10%) that Prince will lose $200,000 if the expansion fails and the branch office must be closed. Should Prince open a branch office in British Columbia

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