Decision Tree. The Summerall Corporation wishes to introduce one of two products to the market this year. The probabilities and present values of projected cash inflows are given below....

Decision Tree. The Summerall Corporation wishes to introduce one of two products to the market this year. The probabilities and present values of projected cash inflows are given below.

Products              Initial Investment ($)      PV of Cash Inflows ($)    Probabilities

A                             225,000                                                                 1.00

450,000                                                 0.4

200,000                                                 0.5

-100,000                                               0.1

B             80,000                                                                                                   1.00

320,000                                                 0.2

100,000                                 0.6

-150,000                                               0.2

(a) Construct a decision tree to analyze the two products. (b) Which product would you introduce? Comment on your decision.