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THE FIH CORPORATION HAS TO DECIDE WHETHER OR NOT TO PURCHASED THE PATENT . IF THE CORPORATION WILL PURCHASED THE PATENT IT WILL COST THEM
THE FIH CORPORATION HAS TO DECIDE WHETHER OR NOT TO PURCHASED THE PATENT . IF THE CORPORATION WILL PURCHASED THE PATENT IT WILL COST THEM P 500,000. THERE ARE TWO METHODS OF DEVELOPMENT. METHOD A WILL COST P 2, 500 , 000 AND HAS 70% CHANCE OF SUCCESS . METHOD B WILL COST P 3,500,000 AND THE PROBABILITY OF SUCCESS IS 75% . IF THE PRODUCT IS DEVELOPED , THE CORPORATION MUST DECIDE WHETHER TO ADVERTISE OR NOT. IT WILL COST P 750, 000 TO ADVERTISED . IF ADVERTISED THE RETURN WILL WILL BE P 7,000,000 , IF NOT , THE RETURN WILL BE P 6,000,000. SHOULD FIH CORPORATION PREPARE A PROPOSAL ? Decision tree
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