Determine the course of action that has the highest expected payoff for this decisiontree. $1.0* $1.3 Do

Determine the course of action that has the highest expected payoff for this decisiontree.

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$1.0* $1.3 Do nothing Medium demand (.5 Large demand (.1) Expand $1.3 $1.5 $1.6 $1.8 $0.7 Do nothing Expand 8 Do nothing Other use #1 Other use #2 $1.0 $1.6 $1.6 $1.5 $1.7 ($0.9) Small demand (.4) Expand Medium demand (.5) Large demand (.1) Do nothing Subcontract Build Do nothing Other use #1 Other use #2 Small demand (.4) $1.0 edium demand (.5) $1.0 Do nothing Other use #1 Other use #2 $0.9 *Net present value in millions $2.4