Draw decision tree-determine whether product lanch or not

Reference no: EM13114168

The managers of MEGA Industries are considering to launch a new mixing plant and there objective is to maximize profit contribution. MEGA's engineers research, develop and design the new Gas Mixing Plant. To keep it simple the average contribution to profit during product life cycle (estimated 6 years) of the new Gas mixing Plant is estimated to be $275 million, $145 million and - $120 million for high, moderate and low market condition respectively. Marketing department of MEGA Industries also estimated that market condition can be high, moderate or low. There is a 34.50% probability that market will be high and 43.50% probability that the market will be moderate. If they didn't launch new mixing plant another alternate can contribute twenty five million profit for the same period (i.e. estimated 6 years)
Draw the complete decision tree and determine whether the product should be launched or not.

Reference no: EM13114168

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