A heavy manufacturing company wants to decide whether to initiate a new project which will last for 5 years. The success of the project depends heavily on the state of the economy, which has a 50/50 chance of being strong enough to support the venture. The project will require an initial investment of $1 million, and the company expects to earn $500,000 in annual revenues from the project – unless the economy goes into recession, in which case the project will return only $100,000 per year.