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Business, 16.02.2022 17:00 madison1284

A home product discount store is considering expanding its capacity to meet a growing demand for its products. The alternatives are to build a new store at a side nearby, ex-pand and refurnish the old store, or do nothing. Economists have projected the regional economic outlook: a 50% probability that the economy will remain unchanged, a 20% probability of an economic upturn, and a 30% probability of an economic downturn. The following estimates of annual returns have been prepared (in millions of dollars): Build new store Expand old store Do nothing Market Downturn Stable Market $(0.8) $(0.4) $(0.1) $0.5 $0.8 $0.2 Market Upturn $2.1 $1.4 $0.5 a. Use a decision tree to analyze these decision alternatives. b. What should the company do based on your decision three analysis

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