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 $13,000 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 $40,000. If demand is high, the small facility is expected to earn $25,000 and can be expanded to medium size to earn $40,000 or to large size to earn $75,000. A medium-sized facility is expected to lose an estimated $25,000 if demand is low and earn $110,000 if demand is average. If demand is high, the medium-sized facility is expected to earn 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 facility is built and demand is high, earnings are expected to be $160,000. If demand is average for the large facility, the present value is expected to be $100,000; if demand is low, the facility is expected to lose $40,000. Which alternative is best according to each of the following decision criterion? (Enter your responses as whole numbers.)

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 $13,000 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 $40,000. If demand is high, the small facility is expected to earn $25,000 and can be expanded to medium size to earn $40,000 or to large size to earn $75,000. A medium-sized facility is expected to lose an estimated $25,000 if demand is low and earn $110,000 if demand is average. If demand is high, the medium-sized facility is expected to earn 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 facility is built and demand is high, earnings are expected to be $160,000. If demand is average for the large facility, the present value is expected to be $100,000; if demand is low, the facility is expected to lose $40,000. 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 c. Minimax regret $ thousand Medium facility Large facility Small facility