Question: reposting with clearer imaging please answer throughly If the small plant is expanded; the probability of demands over the remaining seven years is ( 7



If the small plant is expanded; the probability of demands over the remaining seven years is \\( 7 / 8 \\) for fovorable and \\( 1 / 8 \\) for unfavorable. The accounting department has provided the payoff for each outcome as shown in the following table. Use there estimates to analyze Sunshine's facility decision. Perform a complete decision tree analysis, then calculate the expected payoff (in \\( \\$ \\) ) at each of the labeied chance nodes in the decision tree above \\[ \\begin{array}{l} A=\\$ 2340000 x \\\\ B=\\$ 1770000 x \\\\ C=\\$ \\\\ D=\\$ \\end{array} \\] (b) Recommend a strategy to Sunshine. The facility should build the small plant. Then, if the demand over the first three years is favorable, the company should expand. The facilty should bulid the smal plant. Then, if the demand over the first three years is unfavorable, the company should expand. The focilty should build the small plant. Then, if the demand over the first three years is unfavorable, the company should not expand. The facility should build the large plant. The facility should build the small plant. Then, if the demand over the first three years is favorable, the company should not expand. (c) Determine what payolts (in \\$) could result from your recommendation. (Enter your answers as a comma-separated list.) Sunshine Manufacturing Corvpany has developed a unique new product and must now decide between two facility plans. The first olternative is to build a large new fachly immediotely, The second alternative is to bulld a small plant initially and to consider expanding it to a larger facility three years later if the market has proven favoroble. Marketing has provided probobility estimates for a 10 -year plan as shown in the following table. If the smal piant is expanded, the probabilay of demands over the remaining seven years is \\( 7 / 8 \\) for favorable and \\( 1 / 8 \\) for unfavorable. The accounting department has provided the payoff for each outcome an shown in the following table
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