Question: If one machine is purchased and demand is low, the NPV is $ 1 0 0 comma 0 0 0 . If demand is high,

If one machine is purchased and demand is low, the NPV is $100 comma 000. If demand is high, the manager has three options: (1) doing nothing, which has an NPV of $110 comma 000; (2) subcontracting, with an NPV of $150 comma 000; and(3) buying the second machine, with an NPV of $140 comma 000.

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