An international manufacturer of electronic products is contemplating introducing a new type of compact disk player. After

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An international manufacturer of electronic products is contemplating introducing a new type of compact disk player. After some analysis of the market, the president of the company concludes that, within 2 years, the new product will have a market share of 5%, 10%, or 15%. She assesses the probabilities of these events as .15, .45, and .40, respectively. The vice-president of finance informs her that, if the product captures only a 5% market share, the company will lose $28 million. A 10%market share will produce a $2 million profit, and a 15% market share will produce an $8 million profit. If the company decides not to begin production of the new compact disk player, there will be no profit or loss. Based on the expected value decision, what should the company do?

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