A decision must be made on whether to construct a new plant, expand an existing plant, or do nothing. The uncertainty involves the market for the company's product: it expands, it is stable, or it contracts. The following decision tree has been developed, but the EMVs and TRUE/FALSE values have been grayed out. Assuming that the company is an EMV maximizer, which of the following is true? 0.4 Expands 40.096 $400,000 $ Market outcome 400000 Construct a new plant Stable 25.095 $100,000 25.09 -$200,000 $ 0.25 -100000 0.35 -200000 Contracts - Decision Tree Plant decision 0 Expands 40.09 $250,000 Market outcome 250000 Expand existing plant 0 -50000 0 Stable 25.09 -$50,000 Contracts 35.09 -$75,000 40.096 Expands 550,000 Market outcome -75000 0 50000 Do nothing Stable 25.09 0 0 SO 25.09 0 Contracts -$30,000 -30000 O a. The best decision is to construct a new plant. Its EMV is more than $70,000. O b. The best decision is to expand the existing plant. It has an EMV of more than $65,000. O c. The best decision is to construct a new plant. However, the second-best decision is pretty close, with an EMV within $5,000 of the EMV for the best decision. d. The worst decision is to do nothing. Its EMV is more than $70,000 lower than the EMV for each of the other two decisions. Chal Mal amcinina