A manager is trying to decide whether to buy one machine or two. W only one machine is purchased and demand proves to be excessive, the second machine can be purchased later Some sales would be lost, however, because the lead time for delivery of this type of machine is six months In addition, the cost per machine will be lower if both machines are purchased at the same time. The probability of low demand is estimated to be 0.20 and that of high demand to be 0.80 The after-tax NPV of the benefits from purchasing two machines together is $70,000 if demand is low and 5180,000 if demand is high, If one machine is purchased and demand is low, the NPV is $100,000. If demand is high, the manager has three options: (1) doing nothing, which has an NPV of 5100,000, (2) subcontracting with an NPV of 5140,000; and (3) buying the second machine, with an NPV of $130,000 a. Choose the correct decision tree for this problem. Note that each payoff is given in an in thousands of dollars OA . Q Low demand 100 Do nothing Buy 1 Low demand Q 0.20 100 Buy 2 0.80 100 Do nothing 100 machine High demand Subcontract machines High demand Subcontract 0 80 Low demand Buy 2 130 Buy 2 Low demand 70 machines 130 Buy 2 0.20 Buy 1 -70 machines 0.80 machines High demand 180 machine High demand 0.80 180 0.20 140 020 140 L Help me solve this View an example Get more help Clear all Check answer to search o Raining now . OD. Q Low demand 0.20 @ Low demand 70 Do nothing Buy 1 machine Buy 1 100 100 2 machine High demand 140 High demand 0.80 100 Do nothing Subcontract Buy 2 machines 70 140 Subcontract Buy 2 100 machines Low demand 130 130 Buy 2 machines Low demand 0.20 Buy 2 machines High demand 180 Help me solve this View an example Get more help Clear all Check answer Search O Raining now