Answer:
EV at different nodes:
At node 2,
EV = (0.4×8+0.6×15) - 5
= 12.2 - 5
= 7.2 million
At node 3,
EV = (0.4×10+0.6×20) - 8
= 16 - 8
= 8 million
If there is no action taken, then EV = 0
∵ EV is the highest at node 3,
∴Company would build a plant.
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