An operations manager has compiled the information below for four manufacturing alternatives (A, B, C,and D) that vary by production technology and the capacity of the machinery. All choices enable the same level of total production and have the same lifetime. The three states of nature represent three levels of consumer demand for the firm's products. Values in the table are net present values of future profits in millions of dollars. Show your workings in a table format to get credit for your answers.

Alternative A 90 72 86

Alternative B 70 34 95

Alternative C 41 88 100

Alternative D 85 69 55

1. If the coefficient of optimism () is 0.6, which alternative is best according to Hurwicz criterion?
2. What is the value of perfect information?