Question: PLEASE ANSWER AS SOON AS POSSIBLE AKA Inc. is considering building a new factory. Its managers believe that there is a probability of 0.3 that

PLEASE ANSWER AS SOON AS POSSIBLE

PLEASE ANSWER AS SOON AS POSSIBLE AKA Inc. is

AKA Inc. is considering building a new factory. Its managers believe that there is a probability of 0.3 that the DAMUS Co. will come out with a competitive product. If AKA adds an assembly line for the product and DAMUS Co. does not follow with a competitive product, AKA's expected profit is $46 000; if AKA adds an assembly line and DAMUS follows suit, AKA still expects $11,000 profit. If AKA adds a new plant addition and DAMUS does not produce a competitive product, AKA expects a profit of $620 000; if DAMUS does compete for this market, AKA expects a loss of $95, 000. a. Draw the decision tree b. Determine the EMV of each decision C. Choose the best choice

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