***PLEASE USE EXCEL TO ANSWER THE QUESTION IF POSSIBLE. THANK YOU!!!***

RefCo is a heater manufacturer that currently makes its heaters in Ohio. The manufacturing cost at the Ohio plant is 5600 per heater RefCo sells the heaters for 58000. Its current yearly demand is 1000 heaters: RefCo estimates that cach year, demand lus a 50 percent chance of increasing 10 percent from the year before and a 50 percent chance of remising the same as the year before. The Ohio facility has a capacity of 1000 units RefCots considering to options. The first option is to build a new facility in Michigan The new facility will have a capacity of 500 and RefCo will meu a one time cost of $1.000.000 The manufacturing cost at the new facility will be $5000 per unit because of updated manufacturing processesThe second option is to buy presembled heater from Heatce when demand goes over 1000. The current cost of pressembled bexters from Heatco $3000 per unit RefCo expects Heatco to increase its prices each year RefCo estimates that each year there is a chance that the price will increase by 10% or there is 30 chatice that the price will increase by decision tree to determine which option RefCo should use Counder the expected profits from the current and the next year in your decision making process Assume a discount factor of 10 ore the extra