Question 25 2 pts In considering a capacity expansion, we have two alternatives. The first alternative is expected to receive $1,000,000 if the demand is favorable next year, while to lose $200,000 if the demand is unfavorable. The second alternative has an expected profit of $600,000 if the demand is favorable and an expected profit of $300,000 if the demand is unfavorable. There is 40% chance that the demand is favorable next year. Which alternative should we select, and what is the expected value of the expansion? Alternative 1 $ 680,000 Alternative 2 $500,000 Alternative 1 $520,000 Alternative 2 $550,000 None of the above