Please choose correct chart

What should management do to achieve the highest expectedpayoff?

The management should build a

Small Medium Large Facility choose one

in order to achieve the highest expected payoff of

$__________.

(Enter your response as a whole number.)

A manager is trying to decide whether to build a small, medium, or large facility. Demand can be low, average, or high, with the estimated probabilities being 0.25, 0.40, and 0.35, respectively. A small facility is expected to eam an after-tax net present value of just $14,000 if demand is low. If demand is average, the small facility is expected to eam $15,000; it can be increased to medium size to earn a net present value of $30,000. If demand is high, the small facility is expected to earn $50,000 and can be expanded to medium size to earn $60,000 or to large size to earn $145,000. A mediurn-sized facility is expected to lose an estimated $50,000 if demand is low and earn $90,000 if demand is average. If demand is high, the medium-sized facility is expected to earn a net present value of $100.000; it can be expanded to a large size for a net payoff of S105,000. If a large facility is built and demand is high, earnings are expected to be $180.000. If demand is average for the large facility, the present value is expected to be $80,000; if demand is low, the facility is expected to lose $80,000. Choose the correct decision tree below. Note that each payoff is given in thousands (S000). OA . a Q Exen lang Low 0.3 300 Extend in 1 Ha $180 ANY I10 s80 Lc 25 - 30 LIGH Hg 0.38 TAR A. 0.40 -SOO 00 Tre 125 350 $1015 L $105 High 2 sito ang 8:40 Sac $80 Hgh.23 de Ava 0.40 san Low 1135 350 High 0.25 1 Enal H0.34 $100 Lyon lo my $145 Expand to redu Do nothing - 4 EXDA organ \Do not 55 15 STI Danning $100 3145 Depend to do Dorotting $50 4 Expand to w 1930 Darating 315 Ave 0.40 Low O 25 S14 514 Aug 0.40 Low 0.25 $14 O c. OD. Q Hg 0.30 As 0.40 L25 -580 Exer lang $1015 - Dew $100 325 Dipond to 3106 Large 05100 Hsh ( 35 $180 2 A. 0.40 SAN Lom D2S-580 Largo Hgh0.35 - 1 He wg 0.40 Donoring $90 $100 Low 0.25 -- $50 Hgh0.35 6 Extile Sral 1 Moc Ag 0.40 S90 25 - $50 Eco 5145 Ed S$145 Hon 0.36 3 Exento 1580