W99NOONQ3.2
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 $5 million. If A-Team
fever strikes, you will sell action figures worth $10 million (in
present value). If the foolish youth of today do not catch the
fever, you will only sell action figures worth $2 million. 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 $1 million.