5. Case Study #1. Application of Decision analysis in evaluating a Manufacturing Proposal Your corporation has been presented with a new product development proposal. The cost of the development project is $500,000. The probability of successful development is projected to be 70%. If the development is unsuccessful, the project will be terminated. If it is successful, the manufacturer must then decide whether to begin manufacturing the product on a new production line or a modified production line. If the demand for the new product is high, the incremental revenue for a new production line is $1,200,000, and the incremental revenue for the modified production line is $850,000 If the demand is low, the incremental revenue for the new production line is $700,000, and the incremental revenue for the modified production line is $150,000. All of these incremental revenue values are gross figures, i.e., before subtracting the $500,000 development cost, $300,000 for the new production line and S100,000 for the modified production line. The probability of high demand is estimated as 40%, and of low demand as 60% 1)- Develop the decision structure for the case 2)- Determine the course of action the company must take to optimize return on its investment