If a large facility is built and demand is high, the estimated net present value is $800,000. If demand turns out to be low, the net present value will be -S10.000. The probability that demand will be high is estimated to be 60, and the probability of low demand is estimated to be 40. a. Analyze using a tree diagram, b. Compute the EVPI. How could this information be used? c. Determine the range over which each altemative would be best in terms of the value of P (demand low). Determine the course of action that has the highest expected payoff for this decision tree. $1.0" $1.3 Do nothing Small demand (4) Expand $1.3 Medium demand (.57 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 1.4 Expand Medium demand (.5) $1.6 Large demand (1) $1.6 Do nothing Subcontract $1.5 Build $1.7 Build (S0.9) Do nothing Other use #1 $1.4 Small demand 1.4 Other use #2 $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 14:23 11.