- Draw a decision tree for the problem of whether to market or not the new master control box?

- What is EVPI?

Edelman Electronics was exploring a totally new market of manufacturing electronic components for home use. The heart of the system is the master control box. The research team estimated that it would cost $500,000 to develop equipment and procedures needed to manufacture the master control box and accessories. If successful, this venture could increase sales by approximately $2 million. But would the master control boxes be a successful venture? With a 60% chance of success estimated by the research team, the table below lists the payoffs. States of Nature Choice/Decision Success Not Success Market 1.5 -0.5 Don't Market 0 0