You want to first decide whether you start a new project. The first phase of the project requires research and development (R&D). If the R&D is successful (success probability = p1), then you have to decide whether you implement the project or not. If implemented, the project can succeed with a probability p2. The Decision Tree is illustrated as follows: DecisionTree2 (Scroll to the right to see the complete tree) Probability p1 0.8 Probability p2 0.9 Outcome 1 5,000,000 Outcome 2 -4,000,000 Outcome 3 -3,000,000 Outcome 4 -2,000,000 Outcome 5 0 What is the Expected Value at the first chance node to the right?

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