Question $301$ pts

$($Questions $29-35)$ One European apparel manufacturer has production facilities in Italy and China to serve its European market, where annual demand is for $1\mathrm{.}9$ million units. Demand is expected to stay at the same level over the near future. Each facility has a capacity of $1$ million units per year $($CURRENT$).$ With the current exchange rates, the production and distribution cost from Italy is $10$ euro per unit, whereas the production and distribution cost from China is $7$ euro. Over each of the next three years, the Chinese currency could rise relative to the euro by $15$ percent with a probability of $0\mathrm{.}5$ or drop by $5$ percent with a probability of $0\mathrm{.}5.$ An option being considered is to shut down $0\mathrm{.}5$ million units of capacity in Italy and move it to China at a one$-$time cost of $2$ million euro $($SUGGESTED$).$ Assume a discount factor of $0\mathrm{.}1$ over the three years.

Question $29.$ What is the probability of each node in Year $2?$

Group of answer choices

$0\mathrm{.}5($i$.$e$.50\%)$

$0\mathrm{.}25($i$.$e$.25\%)$

$0\mathrm{.}125($i$.$e$.12\mathrm{.}5\%)$

$0\mathrm{.}0625($i$.$e$.6\mathrm{.}25\%)$

Flag question: Question $31$

Question $311$ pts

What is the probability of each node in Year $3?$

Group of answer choices

$0\mathrm{.}5($i$.$e$.50\%)$

$0\mathrm{.}25($i$.$e$.25\%)$

$0\mathrm{.}125($i$.$e$.12\mathrm{.}5\%)$

$0\mathrm{.}0625($i$.$e$.6\mathrm{.}25\%)$

Flag question: Question $32$

Question $321$ pts

How much is the expected distribution cost from China in Year $1?$

Group of answer choices

$8\mathrm{.}10$ euro

$7\mathrm{.}96$ euro

$7\mathrm{.}72$ euro

$7\mathrm{.}35$ euro

Flag question: Question $33$

Question $331$ pts

How much is the expected distribution cost from China in Year $2?$

Group of answer choices

$8\mathrm{.}10$ euro

$7\mathrm{.}96$ euro

$7\mathrm{.}72$ euro

$7\mathrm{.}35$ euro

Flag question: Question $34$

Question $341$ pts

How much is the expected distribution cost from China in Year $3?$

Group of answer choices

$8\mathrm{.}10$ euro

$7\mathrm{.}96$ euro

$7\mathrm{.}72$ euro

$7\mathrm{.}35$ euro

Flag question: Question $35$

Question $351$ pts

How much is the Year $0$ net present value of $$CURRENT$$ option?

Group of answer choices

$$57,529,771$

$$56,949,240$

$$56,212,385$

$$55,169,562$

Flag question: Question $36$

Question $361$ pts

How much is the Year $0$ net present value of $$SUGGESTED$$ option?

Group of answer choices

$$57,529,771$

$$56,949,240$

$$56,212,385$

$$55,169,562$