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Problem : Adecision is being made - Whether to invest $120M to build a new plant or to invest $50M US to upgrade the existing

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Problem : Adecision is being made - Whether to invest $120M to build a new plant or to invest $50M US to upgrade the existing plant. - Strong demand (60% chance) leads to $200M revenue with the new plant but only $120M US for upgrading the plant - Weak Demand leads to $90 M revenue for a new plant while only $60M for upgrading the existing plant Calculate EMV for both New & Upgrade Plant

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