39. A company is currently working with a process, which, after paying for materials, labour and so on brings a profit of Rs 12,000. The company has the following alternatives:

(i) The company can conduct research R1 which is expected to cost Rs 10,000 and having 90%

probability of success. If successful, the gross income will be Rs 26,000.

(ii) The company can conduct research R2, expected to cost Rs 6,000 and having a probability of 60% success. If successful, the gross income will be Rs 24,000.

(iii) The company can pay Rs 5,000 as royalty of a new process which will bring a gross income of Rs 20,000.

Because of limited resources, only one of the two types of research can be carried out at a time.

Draw the decision tree and bring out the optimal strategy for the company.