Refer once again to the International Expansion spreadsheet (xixs) provided in the previous module. Take note of the financial information provided inthe “Revenue by Location” and “Support Cost by...

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Refer once again to the International Expansion spreadsheet (xixs) provided in the previous module. Take note of the financial information provided in the “Revenue by Location” and “Support Cost by Region.” Use the time value of money in your analysis to assess the pros and cons of each region. Also, experiment with discount rates—one high, middle, and low to understand the effect of cost of capital and risk. First: Calculate the mean revenue per location using the Revenue_By_Location worksheet. Construct a decision tree that analyzes the possibility of achieving the mean revenue on an ongoing basis along with a correspondingly high and low estimate. Use the following data to construct your decision tree: Region Average Rev. Est Low Est High Est Prob. High Prob. Average Prob. Low UK1 Mean + 5% Mean - 5% Mean + 15% 0.1 0.4 0.5 UK2 Mean + 7% Mean - 7% Mean + 20% 0.15 05 0.35 EUL Mean + 5% Mean - 10% Mean + 18% 0.05 06 0.35 EU2 Mean + 5% Mean - 10% Mean + 25% 0.2 045 0.35 EU3 Mean + 8% Mean - 15% Mean + 15% 0.1 0.4 0.5 Next: Construct your decision tree in Excel and calculate the expected value (refer to the readings and resources in this module to identify how to perform these tasks in Excel).