4. (8 points) A retailer is evaluating three options: expand to a new site, expand at current site, or subcontract to another company. The decision process includes the following estimations: Probability Chance events (future demand) Expand to a new site 0.6 High Revenue=400,000 Cost=150,000 Profit Revenue=400,000 Cost=100,000 Profit Revenue=400,000 Cost=80,000 Profit 0.4 Low Revenue=300,000 Cost=150,000 Profit= Revenue=300,000 Cost=100,000 Profit= Revenue=300,000 Cost=80,000 Profit= Expand at current site Subcontract to another company 1) Draw a decision tree (3 points) 2) Solve the tree (3 points) (Hint: you need to use future profits in your calculation. profit=revenue -cost) 3) What should this firm decide to do based on decision tree evaluation? Why? (0.5 point) 4) Provide critical thinking on the decision from decision tree evaluation (1.5 points)