A manager is trying to decide whether to buy one machine or two. If only one is purchased and demand proves to be excessive, the second machine can be purchased later. Some sales will be lost, however, because the lead time for producing this type of machine is six months. In addition, the cost per machine will be lower if both are purchased at the same time. The probability of low demand is estimated to be 0.20. The after-tax net present value of the benefits from purchasing the two machines together is $80,000 if demand is low and $170,000 if demand is high. If one machine is purchased and demand is low, the net present value is $120,000. If demand is high, the manager has three options. Doing nothing has a net present value of $100,000; subcontracting, S150,000, and buying the second machine, $130,000 a. Choose the correct decision tree for this problem. Note that each payoff is given in thousands of dollars. . Low demand 120 Buy 1 machine 100 150 L Buy 1 machine 0.20 120 Do nothing Subcontract Buy 2 80 machines 100 Low demand 0.20 High demand 0.80 Low demand 0.20 High demand 0.80 130 High demand 0.80 Do nothing Subcontract Buy 2 machines 80 150 130 Buy 2 machines Buy 2 machines 170 Low demand 0.20 OD. 100 100 Buy 2 machines Buy 1 machine 150 L 150 L Low demand 0.20 120 Do nothing High demand Subcontract 0.80 Buy 1 Low demand 0.20 80 machine High demand 170 0.80 Low demand 80 Do nothing High demand Subcontract Low demand Buy 2 120 machines High demand 170 130 130 Buy 1 machine Buy 2 machines b. How many machines should the company buy initially? What is the expected payoff for this alternative? Best decision is to buy 2 machine(s) and its expected payoff is (Enter your responses as integers.)