Expando Inc. is considering the possibility of building an additional factory

Expando Inc. is considering the possibility of building an additional factory that would produce a new addition to its
product line. The company is currently considering two op-tions. The ?rst is a small facility that it could build at a cost of $6 million. If demand for new
products is low the company expects to receive $10 million in discounted revenues (present value of future revenues) with the small facility. On the other
hand if demand is high it expects $12 million in discounted revenues using the small facility. The second option is to build a large factory at a cost of $9
million. Were demand to be low the com-pany would expect $10 million in discounted revenues with the large plant. If demand is high the company estimates
that the discounted revenues would be $14 million. In either case the probability of demand being high is .40 and the probability of it being low is .60. Not
constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Construct a
decision tree to help Expando make the best decision.