Question: UD Analytics is working with a client to help therr will decision making regarding future expansion plaris. You are a new hire and as your

UD Analytics is working with a client to help

UD Analytics is working with a client to help therr will decision making regarding future expansion plaris. You are a new hire and as your first assignment you were entrusled with the quantitative analysis for this project Your colleague organized the decision making scenario in the form a decision tree and handed il over to you for further analysis shown below). Answer the following questions: vion F/0.40) Desting 0.60) 300 Large plant FD40) 20 Small plant U(0.601 -10 F Favorable Market U-Unfavorable Market F(0.4010 Do nothing 10.60) 40 1. What is the value of decision 1? 2. What is the EMV of the option of going with the large plant? D 3. What is the EMV of the option of doing nothing ? 1. What is the value of decision 2

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