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 probabilities being 0.40.0.36, and 0.25, respective Asmall facility is expected to earn an after-tax net present value of just $14,000 it demand is low. If demand is average, the small facility is expected to eam $15.000, it can be increased to medium size to eam a net present value of $70.000. If demand is high, the small facility is expected to eam $25,000 and can be expanded to medium size to earn $70,000 or to large size to earn $75.000 A medium-sized facility is expected to lose an estimated $25,000 il demand is low and earn $90,000 i demand is average. If demand is high, the medium-sized facility is expected to earn and present value of $100,000, it can be expanded to a large size for a net payoff of $125,000 If a targeteilty is built and demand is high, earnings are expected to be $160,000. It demand is verage for the large facility, the present value is expected to be 580.000 demand is low, the fatty is expected to lose $40,000 Choose the correct decision tree below. Note that each payoitis pen in thousands (5000) SON 5100 10 140 5135 $100 1 . 100 135 170 116 114 195 OD Time Reminina: 0:40:12 Low Law $40 40 3 $160 LOGO -540 fo ONS 2 065 A Hon 40 D 590 DOIS -5100 575 170 125 575 515 with Ar 0.33 U14 135 Em TIS oc OD 302 N02 SHO ARQU SAO -540 Q GOT LO -39 1100 3125 30 31 580 -140 5700 -1 BI STE De -500 6 - 5100 375 MS 35 A 03 LINO 514 Cape - Dose - 325 -170 DAN 315 AM -11 125 370 DO Ich ho What should management do to achieve the highest expected payof? The management should build a in order to achieve the highest expected payor of enter your response as a whole number) MU 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 probabilities being 0.40.0.36, and 0.25, respective Asmall facility is expected to earn an after-tax net present value of just $14,000 it demand is low. If demand is average, the small facility is expected to eam $15.000, it can be increased to medium size to eam a net present value of $70.000. If demand is high, the small facility is expected to eam $25,000 and can be expanded to medium size to earn $70,000 or to large size to earn $75.000 A medium-sized facility is expected to lose an estimated $25,000 il demand is low and earn $90,000 i demand is average. If demand is high, the medium-sized facility is expected to earn and present value of $100,000, it can be expanded to a large size for a net payoff of $125,000 If a targeteilty is built and demand is high, earnings are expected to be $160,000. It demand is verage for the large facility, the present value is expected to be 580.000 demand is low, the fatty is expected to lose $40,000 Choose the correct decision tree below. Note that each payoitis pen in thousands (5000) SON 5100 10 140 5135 $100 1 . 100 135 170 116 114 195 OD Time Reminina: 0:40:12 Low Law $40 40 3 $160 LOGO -540 fo ONS 2 065 A Hon 40 D 590 DOIS -5100 575 170 125 575 515 with Ar 0.33 U14 135 Em TIS oc OD 302 N02 SHO ARQU SAO -540 Q GOT LO -39 1100 3125 30 31 580 -140 5700 -1 BI STE De -500 6 - 5100 375 MS 35 A 03 LINO 514 Cape - Dose - 325 -170 DAN 315 AM -11 125 370 DO Ich ho What should management do to achieve the highest expected payof? The management should build a in order to achieve the highest expected payor of enter your response as a whole number) MU