Question: please explain, so i can provide summary CHAPTER 5 - TECHNICAL CASE LA ROCHE FABRICATION WANTS TO GET INVOLVED WITH MAKING STEEL SHEDS AND PLAYGROUND

please explain, so i can provide summary
please explain, so i can provide summary CHAPTER
CHAPTER 5 - TECHNICAL CASE LA ROCHE FABRICATION WANTS TO GET INVOLVED WITH MAKING STEEL SHEDS AND PLAYGROUND EQUIPMENT TO DO THIS, THEY MUST CONSIDER THREE OPTIONS: Ontion 1: Go into both markets full force. This requires building a new, large, facility that will cost approximately $1,500,000 which includes the price of the land and the structure. The cost of labor will be built into the sale price of the equipment and is not factored in. If this is a successful venture, the return will be $2,500,000 per year. The chance of it being a major success, with people remodeling their homes and staying in one home for several years, is 4. Untortunately, with the current market and COVID-19 to consider, the downside is that no one has money to spend and the expected return will be $500.000 per year. The chances of this happening are 6. Ontion 2: Test the market by build one or the other sheds or playground equipment at the current facility they own. This is much cheaper and only requires some additions to the current bullding at a cost of $250,000. If this is successful, the potential income is calculated at $900.000 with a 5 chance of it being successful. The downside is that they will lose the market in the option they don't select and their competitor will take it causing them to lose not only that share but possibly the one they have selected the competitor will steal that share as well - and they will only make $200,000. The chances of that happening are also Option 3: do nothing this requires $0 investments but a 50 retum- and no potential losses, either With this option they wait to see what the market and the virus hold for the future! YOU are the Project Manager, and You must consider what to advise the Board THIS CASE INVOLVES TWO PARTS: FIRST, MAKE SURE TO DRAW A CLEAR DECISION TREE WITH ALL STEPS SHOWN. SECOND, GIVE A ONE PAGE SUMMARY (1 INCH MARGINS, DOUBLE SPACED, FONT SIZE 12) SUPPORTING YOUR DECISION AND, IF NECESSARY, ANY CAUTIONS YOU MIGHT RECOMMEND

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