QUESTION Mrs Opportunity is thinking of investing in a garment factory. The decision tree below shows the alternatives available to Mr. Opportunity if he decides to build a large factory or a s mall factory. Low Demand (4) - $40 Do Nothing ($40) Build small Overtime High Demand (6) - $50 Expand $55 $10 Low Demand (4) Do Nothing Build Large High Demand (6) Reduce Prices $50 $70 1. Using the decision tree, sequentially analyze the decisions Mr. Opportunity needs to make of EACH step. (8 marks) 2. Calculate the highest expected value for building (a) a small factory (b) a large factory (4 marks) 3. Determine which alternative Mr. Opportunity must choose if he is to maximize expected monetary returns. (1 mark) 4. Discuss TWO importance of using decision trees as a project management tool. (6 marks) 5. Discuss TWO problems that exist when management uses decision trees