Hemingway, Inc is considering a 5 million research and development project. Profit projections appear promising, but Hemingway president is concerned because of probability that the R D project will be successful is only 0.50. Furthermore, the president knows that even if the project is successful, it will require that the company built a new production facility at cost of 20 million in order to manufacture the product. If the facility is built, uncertainty remains about the demand, and thus uncertainty about the profit that will be realized. Another option is that if the R D project is successful, the company could sell the rights to the product for an estimated 25 million. Under this option, the company would not build the 20 million production facility.