Question: Compute the expected payoffs for each alternative shown in the following decision tree (Values in the tree are in millions. Use the some format, rounding

 Compute the expected payoffs for each alternative shown in the following
decision tree (Values in the tree are in millions. Use the some

Compute the expected payoffs for each alternative shown in the following decision tree (Values in the tree are in millions. Use the some format, rounding to 2 decimals, to enter your answers.) $1.09 513 Do nothing Smal demand 4 Expand 51.3 Medium demand Large demand $1.5 Do nothing Expand $1.0 Bu Subo 50.7 De ning Other 115 Othe $10 Smail demand Expand Medium demand 5) we demand $1,6 Do nothing Subcontract 51.5 Bu 517 Build Do nothing Othere1 $1.4 Others Samad Med Build $1.7 Build Do nothing ($0.9) Other use #1 $1.4 Small demand (4) Other use #2 $1.0 Medium demand (5) $1.0 Large demand (1) Do nothing Other use 21 $1.1 Other use #2 $0.9 Net present value in millions $2.4 EVsubcontract EVexpand EVbuild Thus has the highest expected payoff

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