Question: however, because the lead time for producing this type of machine is six months. In addition, the cost per machine will be lower if both

however, because the lead time for producing this

however, because the lead time for producing this type of machine is six months. In addition, the cost per machine will be lower if both are the same time. is high. subcontracting, $140,000; and buying the second machine, $120,000. a. Choose the correct decision tree for this problem. Note that each payoff is given in thousands of dollars. It one machine is purchased and demand is low, the net present value is $110,000. If demand is high, the manager has three options. Doing nothing has a net present value of $100,000; subcontracting, $140,000; and buying the second machine, $120,000. a. Choose the correct decision tree for this problem. Note that each payoff is given in thousands of dollars. A. B. D. b. How many machines should the company buy initially? What is the expected payoff for this alternative? Best decision is to buy machine(s) and its expected payoff is $ (Enter your responses as integers.)

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