You are considering the wholesale purchase of 10,000 computers for $6,000,000 with the idea of reselling them at retail. . All cash inflows from sales are estimated as at the end of the year. In the first year each computer will sell for $1,000. In the second year each computer will sell for $500 since it will then be considered an older model. At the end of the second year you will have to pay another company $60 per computer for the proper disposal of any remaining computers. Each year, it is the probability that there will be high sales is 40% and the probability of low sales is 60%. In a high sales year, you will sell 6,000 computers, and in a low sales year you will only sell 3,000. a) Draw a decision tree for this problem. b) Should you purchase the computers? Use an opportunity cost of capital of 10% and show all work. c) A school is looking to purchase 7,000 computers at the end of one year. If you have 7,000 to sell, they will purchase them for $2,500,000. If you cannot sell 7000 then they do not want to buy any. i. Produce a new decision tree that shows the option to sell to the school. ii. What is the new value of the total investment.