Question 9 Use the following decision tree, but update the probabilities as follows: Probability of Small Demand = 20% Probability of Medium Demand = 14% Probability of Large Demand = remaining probability What is the expected value with perfect information (in millions)? $1.0" Do nothing Small demand (4) Expand Medium demand (.5) Large demand (1) Do nothing Expand Build Subcontract Do nothing Other use #1 Other use #2 $1.0 Small demand (4) Expand Medium demand (.5) $1.6 Large demand (1) $1.6 Do nothing Subcontract $1.5 Build $1.7 ($0.9) Do nothing Other use #1 $1.4 Other use #2 Small demand (4) $1.0 Medium demand (.5) Large demand (1) Do nothing Other use #1 Other use #2 $0.9 * Net present value in millions $2.4