A regional fast-food restaurant is considering an expansion program. The major factor influencing the success of such a program is the future level of interest rates. It is estimated that there is a 40 percent chance that interest rates will increase by 3 percentage points, a 35 percent chance that they will remain the same, and a 25 percent chance that they will decrease by 3 percentage points. The alternatives they are considering and possible payoffs are shown in the following table:

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Rates Rates Rates Increase No Change +S150,000 +S100,000 Decrease Build 50 new places Build 25 new places +S250,000 -$100,000 -S80,000 +S180,000 Do Nothing +$125,000 -S50,000 +S50,000