Question

8A.20
Financial Management
Decision Tree Analysis
14. White Ltd, is considering the proposal of expansion of his plant capacity. The company
intends to use a decision tree approach to get a clear picture of the possible outcomes of
this investment. The plant expansion is likely to cost Rs. 30,000.
P.V, of cash inflows:
With Expansion Without Expansion Probability
30,000
20,000
0-2
50,000
20,000
0.4
90,000
35,000
0.4
Evaluate financial feasibility of project.​

Answer 1

Answer:

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