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You own a fruit proceeding plant, and you plan to operate your business for another one more year (12 months). Crm'entlv, you have three options.
You own a fruit proceeding plant, and you plan to operate your business for another one more year (12 months). Crm'entlv, you have three options. Option A: To build a new plant with RM 150 Million; or Option B: To invest RM 151'] Million to upgrade the existing plant, or Option C: Rent a plant from Avenue company with monthly rental foe of RM 10 Million, and a tntm'tljrr maintenance fee of RM 100,000. If you build aplant, there will be a T096 of strong demand which lead to a reverse ofRM 250 Million; and 30% of weak demand which lead to a revenue of RM 50 Million. However, if you upgrade the existing plant, there will be a 30% of strong demand which lead to a revenue of RM 300 Million; and a T096 of weak demand which lead to a revenue of RM 100 Million. If you decide to rent a plant from Avenue company, there will be 60% of strong demand which lead to a revenue of RM 300 Million; and a 40% of weak demand which lead to a revenue of RM 100 Million. By using a decision tree diagram, calculate the expected monetary value (EMV) for all options and explain the best option to choose from
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