4.A manufacturer finds the opportunity to increase his business beyond his present or existing production capacity. In orderto decide whether to increase the production capacity, he would need a reliable information about increase in demand of theproduct, based on which only, he can commit his resources. He has two choices open to him, firstly, the expansion of theexisting capacity with a cost of Rs. 8 lakhs or the modemisation of the plant at a cost of Rs. 5 lakhs. The time required forimplementation of both the options is expected to be the same. While considering the demand pattern, he estimates the highdemand situation at a probability of 0.35 as compared to the moderate rise in demand at 0.65 probability. He also estimatesthat he would be spending an additional amount of Rs. 12 lakhs for expansion against Rs. 6 lakhs for modernisation, if thedemand rise is high, whereas in case of moderate demand increase, the expenditure involved would be Rs. 7 lakhs forexpansion or Rs. 5 lakhs for modernisation process. calculate the conditional profits under various combinations​