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

Compute the expected payoffs for each alternativeCompute the expected payoffs for each alternative

Compute the expected payoffs for each alternative shown in the following decision tree. (Values in the tree are in millions. Use the same format, rounding to 2 decimals, to enter your answers.) $1.0* $1.3 Do nothing Small demand (4) Expand $1.3 Medium demand (.5) Large demand (1) $1.5 Do nothing Expand $1.6 Build $1.8 Subcontract $0.7 Do nothing Other use #1 $1.5 Other use #2 $1.0 Small demand (4) Expand Medium demand (.5) $1.6 $1.6 Large demand (.1) $1.6 Do nothing Subcontract $1.5 Build $1.7 Build ($0.9) Do nothing Other use #1 $1.4 Other use #2 Small demand (4) $1.0 Medium demand (5) $1.0 Large demand (1) Do nothing Other use #1 $1.1 Other use #2 $0.9 * Net present value in millions $2.4 EVsubcontract EVexpand EVbuild

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