Here is the question you are required to answer; A company needs to replace its current production plant which is worn out and is considering three possibilities. The first choice is to replace the plant with new technology to produce the same product, the second is to build a plant with new technology to produce a superior product, and the third is to build a plant, again using new technology, which can produce either the existing or the new, superior, product. Their respective costs are; £5.76 million, £8.45 million and £14.8 million. At present two movements will impact on the decision; customer choice and a Bill in Parliament which supports the new and safer product, but will not exclude the old. Analysts have made the following estimates. If Parliament favours the new product then the income generated for each of the following 5 years will be £3.07 million and £2.19 million for the new and old products respectively. If the Bill fails to be enacted then the corresponding values are £3.08 million and £2.84 million. All these estimates are in present day values. The probability of the Bill becoming law is estimated at 39.6% and if that happens, the probability of customers adopting the new product is 66.6%. If the Bill fails the probability of customers adopting the new product is 33.3%. Help the company make a decision by constructing and analysing a decision tree for the problem. Complete your assignment with a succinct statement of the action or actions you recommend together with the expected value of these actions