BigPharma Inc. is a company that develops different medicines. It can continue to develop a drug, but it needs FDA approval to continue, which management estimates will happen with 80% likelihood. If the drug is approved, the company will earn $800 million in profit, but if it is denied by the FDA, they will lose $200 million. BigPharma Inc. can also buy a smaller company who is developing a similar drug, which is already FDA approved. If they buy the smaller company, they can make a $500 million profit. a) What should BigPharma Inc. do? (Draw and solve the decision tree). b) Instead of $800 in profit from developing their own drug, suppose the market for the drug is unknown and so too is the profit potential. At what amount of profit, given FDA approval, would BigPharma Inc. be indifferent between developing their own drug and buying the smaller company?