However, some in the management think that the development and production of drug B entails too much risk and uncertainty, and it would be better to focus on drug A only. The company is considering hiring the Edinburgh Medical Research Company (EMRC) 'om UK to estimate their chances with the development and nancial success of drug B. EMRC experts will provide a favourable report (success is the most likely outcome of the drug B research} or an unfavourable report (the research for drug B will most likely end up in failure}. Success means that the medication with expected properties is created and approved by Health Canada. It is known that there is a 9% chance that ELIRC provides a favourable report given the positive outcome. There is also an 30% chance that EIvTRC provides an unfavourable repot given the negative outcome. ELTRC specialists need six months to complete their analysis and request $10 million as they have to use expensive equipment and hire additional staff. Of course, the company would like to get a report from EIMRC before they make a decision and submit their proposal to Hirschmann Scientic Foundation. The company needs a qualied second opinion, as at the moment opinions among management itself are sharply divided and votes are split. Please perform an analysis of the problem facing the JeanJacques Berthoud Pharmaceutical Company (Berthoud), and prepare a report that summarizes your ndings and recommendations. Include the following items in your report