Question: Problem 5S-5 Compute the expected payoffs for each alternative shown in the following decision tree. (Enter your answers in millions. Round your answers to 2

Problem 5S-5 Compute the expected payoffs for

Problem 5S-5 Compute the expected payoffs for

Problem 5S-5 Compute the expected payoffs for

Problem 5S-5 Compute the expected payoffs for each alternative shown in the following decision tree. (Enter your answers in millions. Round your answers to 2 decimal places.) Do nothing Small demand (4) Expand W Medium demand (.5 1 Large demand (1) Do nothing Expand Build 0 Subcontract Do nothing Other use #1 1 Other use #2 Small demand (4) Expand Medium demand (.5) 0 Large demand (1) 0 Do nothing Subcontract 1 Build Build Do nothing Other use #1 Other use #2 Small demand (4) Medium demand (.5) Large demand (1) Do nothing Other use #1 Other use #2 * Net present value in millions ta EV subcontract EV expand EVbuild ta ta Thus, (Click to select) has the highest expected payoff

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