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 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 $14,000 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 earn a net present value of $70,000. If demand is high, the small facility is expected to earn $25,000 and can be expanded to medium size to earn 590,000 or to large size to earn $100,000 A medium-sized facility is expected to lose an estimated $25,000 if demand is low and earn $90,000 if demand is average. 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 $135,000. 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 $70,000. Choose the correct decision tree below. Note that each payoff is given in thousands ($000). High 0.35150 Avg 0.40580 Expand to lrg $135 Low 0.25 - $70 Large High 0.35 Med Avg 0.40 - $25 Small High 0.35 Do nothing $100 Expand to lng $100 Expand to megeo Do nothing $25 Expand to me 70 Do nothing $15 Avg 0.40 Low 0.25314 What should management do to achieve the highest expected payoff? The management should build a in order to achieve the highest expected payoff of $(Enter your response as a whole number.)