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 0.4 , 0.35 , 0.25 and , respectively.

A small facility is expected to earn an after-tax net present value of just 15,000 if demand is low. If demand is average, the small facility is expected to earn 25,000; it can be increased to medium size to earn a net present value of 60,000. If demand is high, the small facility is expected to earn 50,0000 and can be expanded to medium size to earn 90,000 or to large size to earn 125,000.

A medium-sized facility is expected to lose an estimated 25,000 if demand is low and earn 90,000 if demand is average. 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 135,000.

If a large facility is built and demand is high, earnings are expected to be 170,000. 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 large, medium or small? $_________ in thousands

B. Maximin large, medium or small? $_________ in thousands

C. Minimax regret large, medium or small? $_________ in thousands

Please supply the decision and the value of return