Two process modifications are being considered. The initial costs and savings are shown below. The savings below depends on future sales volumes and product lifetimes. The firm's MARR is $15\%.(18$ points$)$

$\backslash$table$[[$Project$,$Cost $($$$),$Savings per year $($$$),$Probability for initial savings,Project life,Probability for broject life$],[$A$,150$K$,30$K$,0\mathrm{.}25,3,0\mathrm{.}6],[,,60$K$,0\mathrm{.}55,5,0\mathrm{.}4],[,,90$K$,0\mathrm{.}2,,],[$B$,190$K$,50$K$,0\mathrm{.}35,2,0\mathrm{.}7],[,,80$K$,0\mathrm{.}5,4,0\mathrm{.}3],[,,120$K$,0\mathrm{.}15,,]]$

Draw the decision tree for this problem. $(4$ points$)$

What is the expected NPV for each project? $(10$ points$)$

Which option do you recommend given the expected$-$value criterion? $(4$ points$)$

What is the risk for each project? $($Bonus: $5$ points$)$