W998AMQ3.2
2.You are considering making a Howlin’ Mad Murdock action figure to capitalize on what you are sure will be a massive resurgence in A-Team fever. Production will cost $1 million. If A-Team fever strikes, you will sell action figures worth $3 million (in present value). If the foolish youth of today do not catch the fever, you won’t sell any action figures (present value of $0). Each scenario has a 50% chance of happening. Before beginning production, you can field a marketing survey to determine which scenario will happen. The survey costs $200,000.