Question: HELP!! a 4 part question 5. A manufacturer is evaluating three options: expand to a new site, expand at current site, or subcontract to another

HELP!! a 4 part question HELP!! a 4 part question 5. A manufacturer is
5. A manufacturer is evaluating three options: expand to a new site, expand at current site, or subcontract to another company. The decision process includes the following estimations: Chance events (future demand) High Probability 0.75 Revenue-300,000 Cost=100,000 Expand to a new site Profit Low 0.25 Revenue-200,000 Cost=100,000 Profit Revenue 300,000 Revenue 200,000 Cost-70,000 Cost-70,000 Expand at current site Profit Profit Revenue-300,000 Revenue-200,000 Subcontract to another Cost-75,000 Cost=75,000 company Profit Profit 1) Draw a decision tree 2) Solve the tree (Hint: you need to use future profits in your calculation profit -revenue -cost) 3) What should this firm decide to do based on decision tree evaluation? Why? 4) Provide critical thinking on the decision from decision tree evaluation

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