Question: Please do answer and draw the tree diagram QUESTION 2 The management of New Age Computing is considering developing a new type of mobile gaming

 Please do answer and draw the tree diagram QUESTION 2 The

Please do answer and draw the tree diagram

QUESTION 2 The management of New Age Computing is considering developing a new type of mobile gaming device. The project requires an initial investment of R25 million. There is a 60% chance that the project will have a positive cash flow of R20 million in year 1. If the cash flow is achieve in year 1 and then there is a 60% chance that the project will have a cash inflow of R30 million in year 2 or a 40% chance that the cash inflow will be R15 million in year 2. If the project is not successful there is a 40% chance that the project will have a negative cash flow of R10 million in year 1. In the case of year 1, there is a 50% chance that the project would have a positive cash flow of R15 million in year 2 or a 50% chance that the project will have a negative cash flow of R10 million in year 2. REQUIRED: 2.1 Draw a decision tree for the above project with four pathways, namely A, B, C & D. (10 marks)

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