Decision Analysis:

$$ Use the principles of decision analysis to evaluate each expansion option. Consider the initial investment, expected revenues, and associated probabilities.

EMV and Decision Trees:

$$ Construct a decision tree for the expansion decision using Excel and, if available, the PrecisionTree Add$-$In$.$

$$ Calculate the Expected Monetary Value $($EMV$)$ for each decision alternative.

Risk Aversion Considerations:

$$ Based on the management's risk appetite $($you can define this or provide multiple scenarios$),$ provide recommendations. Should 'Cafe Aroma' expand? If so$,$ which town offers the most strategic advantage?

Reflection:

$$ Discuss the challenges faced during this decision$-$making process. How did the tools from this week's module aid in your analysis? Would the decision change significantly if the management was highly risk$-$averse or risk$-$seeking?