Safe-Drive is competing against several safety equipment producers for a contract worth 20M dollars with a major Japanese car manufacturer. Safe-Drive may offer its safety system in its current stage of development or invest in R6513 in an attempt to offer a better product. If the product is offered in its current form, there is a small probability ( p, ) of winning the contract. An investment of $4M in R&D will improve their product with a probability of p,. If the further investment is successful (hence, R&D was successful), the probability of winning the contract increases and is now 1),. On the other hand, if the further development is unsuccessful, the probability of winning the contract remains p1 . 1. Draw a decision tree describing the problem Safe-Drive is facing. 2. If p, = 0.? and p3 = 0.5 , for which value of 1:11 is Safe-Drive indifferent between investing in R&D and remaining with the existing product? 3. You have been given the following information: 1.9, = p, = 2 p1 , and that the option of attempting to improve the product by investing in R&D yields on average $2.4M more than the option of pursuing the contract with the existing product. Calculate the probabilities involved in the decision (P131023 and p3)