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 the estimated probabilities being 0.25, 0.40, and 0.35, respectively A small facility is expected to earn an after-tax net present value of just $11,000 if demand is low. If demand is average, the small facility is expected to earn $15,000, it can be increased to medium size to eam a net present value of $60,000. If demand is high, the small facility is expected to earn $25,000 and can be expanded to medium size to earn $70,000 or to large size to earn $145,000 como A medium-sized facility is expected to lose an estimated $25,000 if demand is low and earn $90,000 if demand is average. If demand is high, the medium-sized facility is expected to earn a net present value of $100,000, it can be expanded to a large size for a net payoff of $105,000 If a large facility is built and demand is high, earnings are expected to be $150,000. If demand is average for the large facility, the present value is expected to be $80,000, if demand is low, the facility is expected to lose $50,000 Which alternative is best according to each of the following decision criterion? (Enter your responses as whole numbers.) Criterion Decision Value of Return a. Maximin $ thousand b. Maximax thousand S c. Minimax regret thousand
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