. The base case of the production project using the deterministic approach for the traditional platform without water injection that cost $800M yields an NPV of $350 M. Suppose it is thought that there is a good chance that the aquifer is strong enough to obviate the need for pressure support by water injection to enhance the production. However, there is a 25% chance that the aquifer might be only of medium strength and a 15 % chance that is weak, resulting in NPV’s of $0 and -$150M respectively. To mitigate these possibilities, two additional alternatives are considered. -The first is to include water injection capability when the platform is first built with the total capital cost of $1000M. And no injection is 800M. -The second is to build a platform with sufficient space & strength to enable the option of adding injection capability at a later date (flexible platform) with a cost of $860M. The cost of upgrading to water injection is $160M From the given alternatives, the full set of NPV’s and probabilities are in table below. Aquifer Support Strong Medium Weak Probability of Support 60% 25% 15% NPV ($M) Water Inject $200 $150 $100 No Water Inject $350 $0 -$150 Inject Flex $180 $130 $80 Please construct the decision tree to analyze and recommend the appropriate decision (ignored your own discounting) to select 3 kinds of platform. How much is the value of the option of upgrading to an injection capability?