A machine shop specializing in industrial pumps is experiencing a substantial backlog and is considering three possible actions: Arrange for subcontracting (A) Construct new facilities (B) Do nothing (C) The correct choice depends on the demand, which may be low, medium and high, with the probabilities of 0.2, 0.5, and 0.3, respectively. The management estimates the NPV from the three alternative actions (A, B, and C) under the different probable level of demands. These estimated NPVs values (in $100,000) are in the below table: Alternative Low Medium High 50 90 - 120 60 A 10 200 B 25 40 20 a) Which option (A, B, or C) you would recommend based on the expected NPV value? b) Evaluate the variance for each action c) Using probabilistic analysis, compare action A & C to calculate P(NPVA>NPVC) and P (NPWA