A large process line is going to cost $400,000 a small process line will cost $300,000. The question, therefore, is the demand for rustic furniture. After extensive discussion with Mr. Gilbert and Rosalita Ferrera of Ferrera Market Research, Inc., you determine that the best estimate you can make is that there is a two-out-of-three chance of high demand resulting in $650,000 profit from sales and a one-out-of-three chance of low demand resulting in $325,000 profit from sales. With a large process line, you could handle the high figure of $650,000. However, with a small process line you could not and would be forced to expand (at a cost of $175,000), after which time your profit from sales would be $550,000 rather than the $650,000 because of the lost time in expanding the process. If you do not expand the small process, your profit from sales would be held to $400,000. If you build a small process and the demand is low, you can handle all of the demand. The best option is to open a small line OR large line? With an expected value of how many dollar? $117,750