PLEASE ANSWER ALL PARTS, and choose from the multiple choice

Cheryl Druehl Retailers, Inc., must decide whether to build a small or a large facility at a new location in Fairfax. Demand at the location will either be low or high, with probabilities 0.4 and 0.6, respectively. If Cheryl builds a small facility and demand proves to be high, she then has the option of expanding the facility. If a small facility is built and demand proves to be high, and then the retailer expands the facility, the payoff is $290,000. If a small facility is built and demand proves to be high, but Cheryl then decides not to expand the facility, the payoff is $253,000. If a small facility is built and demand proves to be low, then there is no option to expand and the payoff is $230,000. If a large facility is built and demand proves to be low, Cheryl then has the option of stimulating demand through local advertising. If she does not exercise this option, then the payoff is $55,000. If she does exercise the advertising option, then the response to advertising will either be modest or sizable, with probabilities of 0.6 and 0.4, respectively. If the response is modest, the payoff is $50,000. If it is sizable, the payoff is $210,000. Finally, if a large facility is built and demand proves to be high, then no advertising is needed and the payoff is $600,000. a) What should Cheryl do to maximize her expected payoff? Choose the correct decision tree below. Note that all payoffs are in $1,000s. A. . Q O 230 230 low (0.4) low (0.4) expand expand -290 290 small 2 high (0.6) large 2 high (0.6) ( don't expand 253 modest (0.6) 50 don't expand 253 modest (0.6) 50 1 1 advertise sizable 210 (0.4) large low (0.4) small sizable advertise 210 low (0.4 (0.4) 3 55 I don't advertise 3 55 don't advertise high (0.6) high (0.6) 600 600 Oc. OD. Q Q 230 230 low (0.6) ( low (0.4) ) 2 expand 290 small high (0.47 small don't expand 253 modest (0.4) 50 1 1 1 2 expand 290 high (0.6 don't expand 253 modest (0.6) 50 advertisesizable 210 low (0.4 (0.4) 3 55 don't advertise large advertise sizable 210 (0.6) low (0.4) ( 3 55 don't advertise large high (0.6) high (0.6) 600 600 Cheryl should build the large facility. If demand proves to be low, then advertise to stimulate demand. b) What is the value of this expected payoff? The expected payoff is $ 405000 (round your response to the nearest dollar)