Rework Problem 15-17, assuming that the demand can be high, medium, and low with probabilities .7, .2, and .1, respectively. Expansion of a small plant will occur only if demand in the first 2 years is high. The following table provides estimates of the annual income. Ignore the time value of money.

Annual income estimates (in $1000)
Alternative High demand Medium demand Low demand Full-sized plant now 1000 500 300 Small-sized plant now 400 280 150 Expanded plant in 2 years 900 600 200