Question: Expected Payoff for Small Facility = ( . 4 ) * $ 1 2 M + ( . 6 ) * $ 1 0 M

Expected Payoff for Small Facility=(.4)* $12M+(.6)* $10M = $10.8 M
$10.8M $6M = $4.8MExpected Payoff for Small Facility=(.4)* $12M+(.6)* $10M = $10.8 M
$10.8M $6M = $4.8M

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