Question: A manager is trying to decide whether to build a small, medium, or large facility. Demand can be low, average, or high, with the estimated

 A manager is trying to decide whether to build a small,
medium, or large facility. Demand can be low, average, or high, with

A manager is trying to decide whether to build a small, medium, or large facility. Demand can be low, average, or high, with the estimated probablities being 0.25 , 0.40 , and 0.35 , respectively. A smali faclity is expected to oam an ater-tax net present valuo of just $14,000 if demand is low. If demand is averngo, the small facilty is expected to eam $15,000; it can be inereased to medium size to eam a net present volue of $60,000. If demand is high, the small faclity is expected to eam $25,000 and can be expanded to medium size to eam $60,000 or to large sice to eem $135,000. A medium-sizad facility is expected to lose an estimated $25,000 if demand is low and eam $120,000 if dernand is average. If demand is high, the medium-sized facility is expectod to eam a net present value of $125,000; it can be expanded to a large size for a net payoff of $145,000. If a large faclily is built and demand is high, eamings are expected to be $150,000. If demand is average for the largo faclity, the presert value is expected to be $80,000; it demand is low, the facility is expected to lose 570,000 . Which aitemative is best according to each of the following decision criterion? (Entar your rosponsos as whiole numbers) expected to be $150,000. If demand is average for the large facility, the present value is ving decision criterion? (Enter your responses as whole numbers.)

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