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Academic MBA Question:

Q: Lovely Lifesciences, a biotech company is evaluating two molecules (AA & BB) for development. Below diagram shows the decision trees of both products. In development process, first the company does a clinical trial and then based on results of clinical trial, product is modified accordingly and launched in the market. If the results are good in clinical trial, company launches as per plan A and if not, then as per plan B. In the decision trees, expected profit in all scenarios and probability of scenarios are mentioned. As per expected profits, out of these two, which one product should the company develop.

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