Question: $ 1 6 0 , 0 0 0 if demand is high. an NPV of $ 1 5 0 , 0 0 0 ; and
$ if demand is high.
an NPV of $; and buying the second machine, with an NPV of $
a Choose the correct decision tree for this problem. Note that each payoff is given in thousands of dollars.
c
b What is the best decision and what is its expected payoff?
Best decision is to buy
machines and its expected payoff is $
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