QUESTION 3: DECISION MAKING Chilly Ltd has two mutually exclusive projects it is considering, the net cash flows of the projects being determined by consumer demand. Project A is likely to return $60,000 if consumer demand is good and $20,000 if consumer demand is poor. Project B will return $70,000 if consumer demand is good, but there will be a net loss of $10,000 if customer demand is poor. Research has shown that the probability of consumer demand being good is 80% and poor 20%. REQUIRED: a) Recommend which project Chilly Ltd should adopt. Justify your decision and explain the profit implications of your choice. (5 marks) b) Customer Consultants is a consultancy firm which can provide you with a very accurate forecast of consumer demand. State the maximum price you would be prepared to pay for this information. (2 marks)