Question: (10 pts) Q.2: Alpha Tech. Inc., has developed a new computer chip that will enable it to begin producing and marketing a personal computer if

(10 pts) Q.2: Alpha Tech. Inc., has developed a new computer chip that will enable it to begin producing and marketing a personal computer if it so desires. Alternatively, it can sell the rights to the computer chip for $15 million. If the company chooses to build computers, the profitability of the venture depends upon the company's ability to market the computer during the first year. It has sufficient access to retail outlets that it can guarantee sales of 10,000 computers. On the other hand, if this computer catches on the company can sell 100.000 machines. For analysis purposes, these two levels of sales are taken to be the two possible outcomes of marketing the computer, their prior probabilities are 0.4 and 0.6, respectively. The cost of setting up the assembly line is $6 million. The difference between the selling price and the variable cost of each computer is $600. a. Construct a decision tree that shows all options. b. Using decision trees analysis and EMV, which decision alternative should be chosen

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