Question: PLEASE SHOW WORK Compute the expected payoffs for each alternative shown in the following decision tree. (Values in the tree are in millions. Use the
PLEASE SHOW WORK
Compute the expected payoffs for each alternative shown in the following decision tree. (Values in the tree are in millions. Use the same format, rounding to 2 decimals, to enter your answers.) $1.0" $13 Do nothing Smal demand Expand 31.3 Medium demand 15 $1.5 Large demand (1) Do nothing Expand $1.6 Build 31.8 Subcontract $0.7 Do nothing Other use 81 $1.5 Other une 2 $1.0 Small demand (4) Expand $1.6 Medium demand (5) Largo demand 1.1) $1.6 Do nothing Bubcontract $1.5 Build $1.2 ($0.9) Build Do nothing Other use #1 $1.4 Other use #2 $1.0 Small demand (4) Medium demand (.5), $1.0 Do nothing Larr Other use #1 Build $1.7 Build ($0.9) Do nothing Other use #1 $1.4 Other use 82 Small demand (4) $1.0 Medium demand (.5), $1.0 Large demand (1) Do nothing Other use #1 $1.1 Other use #2 $0.9 $2.4 * Net present value in millions EVsubcontract EVexpand EVbuild has the highest expected payoff. Thus

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