Drop Down Options Include:

Small Facility

Medium Facility

Large Facility

A manager is trying to decide whether to build a small, medium, or large facility. Demand can be low, average, or high, with the estimated probabilities being 0.25, 0.40, and 0.35, respectively. A small facility is expected to eam an after-tax net present value of just $11,000 if demand is low. If demand is average, the small facility is expected to earn $15,000; it can be increased to medium size to earn a net present value of $30,000. If demand is high, the small facility is expected to earn $25,000 and can be expanded to medium size to earn $40,000 or to large size to earn $150,000. A medium-sized facility is expected to lose an estimated $25,000 il demand is low and eam $90,000 if demand is average. If demand is high, the medium-sized facility is expected to earn a net present value of $100,000; it can be expanded to a large size for a net payoff of S105,000. If a large facility is built and demand is high, eamings are expected to be S160,000. If demand is average for the large facility, the present value is expected to be $80.000; if demand is low, the facility is expected to lose $70.000 Choose the correct decision tree below. Note that each payoff is given in thousands ($000). OA OB Q Q 9:35 $100 Ang Dudu Le 0.29 - $70 Ang 9.00 seo - 0 Explor LOW 0.25 stos S105 Explg sis Art High 0.35 Ang 9 49 S90 Low 0.25 $25 High 0.95 $100 High DAS Medt Ang 0.40 SSO LUW 0.25 - 26 High 095 Ena Ena and 12. $150 Expand to med 540 Do nothing Espardo Do nothing 315 $100 Best F10 Expand med 40 De nothing 925 Expand med so De woning $15 Ang 40 Low 0.25 S11 Ang 0.40 LOW 0.25 S11 . OD @ Expandove sics In 325 $160 Ang 49 50 Ang 0.40 s80 De nothing Doord 5105 LAN 0.2 - 570 Low 0.22 S70 Largo High 19 Teo-Anj:43 S90 Low 0.25 2 Large gh 1 S90 Med ANI 140 - 0.2 526 $25 Hagt 1125 15 Sms Do nothing -$100 Excand 1512 5150 Expordio mcd40 De w $25 Emil 30 D $15 Smal AU Expand to 19 150 Expand med s40 De nothing $25 l : iilo Low 0.35 su Any 0.43 LITW 1.73 $11 $ S1C What should management do to achieve the highest expected payoff? The management should build a in order to achieve the highest expected payoff of $ . (Enter your response as a whole number.)