An electronic company makes a profit of $10,000 per day at present

Economics May 26, 2022

An electronic company makes a profit of $10,000 per day at present. The company has the option to go in for licence from another company and make a profit of $20,000 per day gloss but has to pay a royalty of $6,000 per day. It has another option to go n for research and development at a cost of $10,000. The company makes a profit of $25,000 with the probability of 70% success and 30% failure. Draw a decision tree and choose the appropriate action.