The first is a small facility that it could build at a cost of $$7$ million. If demand for new products is low, the company expects to receive $$10$ million in discounted revenues $($present value of future revenues$)$ with the small facility. On the other hand, if demand is high, it expects $$14$ million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $$10$ million. Were demand to be low, the company would expect $$12$ million in discounted revenues with the large plant. If demand is high, the company estimates that the discounted revenues would be $$16$ million.