Darwin uses decision tree analysis in order to evaluate potential projects. The company has been looking at the launch of a new product which it believes has a 70 percent probability of success. The company is, however, considering undertaking an advertising campaign costing £50 000, which would increase the probability of success to 95 percent.
If successful, the product would generate income of £200 000, otherwise £70 000 would be received.

What is the maximum that the company would be prepared to pay for the advertising?
(a) £32 500
(b) £29 000
(c) £17 500
(d) £50 000.