A store is evaluating two options:

• expand to a new location
• stay and do nothing in current place for the next five years

The decision process includes the following:

• Moving to the new site:
  • would cost $500,000
  • annual returns with strong growth = $3 million; with weak growth = $2 million
• Doing nothing:
  • annual returns with strong growth = $2 million; with weak growth = $1.5 million

Strong growth has a 70% probability and operating costs for all other options are equal.

Draw a decision tree of the problem and determine the best solution with highest expected value.