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Urgent please Question 2 4 Support If the company builds a small plant, and has initial low demand in the first two years, the company

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Question 24
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If the company builds a small plant, and has initial low demand in the first two years, the company will continue with a small plant and yield 400,000/yr cash flow in 10 years. Consider the initial high demand probability of 80% with the first two years generate 500,000/yr cash flow, and probability of 20% with initial low demand. Building a small plant cost 1,300,000. What's net project cash flow for a small plant based the decision-tree calculation? (1.B)
Question 25
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Based the comparison of projected net cash flow in 10 years from a big plant vs. a small plant, should the company build a small plant or a big plant? Decision 1.
Big Plant
Small Plant
Not enough information to decide
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