A Manager is trying to decide whether to buy one machine or two . If only ONE is purchased and demand proves to be Excessive , the second machine can be purchased later . SOME sales will be lost , however , because the lead time for producing this type of Machine is six months . In addition , the cost per machine will be lower if both are* purchased at the same time . The probability of low demand is Estimated to be 0. 20 . The after- tax net present Value of the benefits from purchasing the two machines together is 590, 000 if demand is low and $ 180, 000 if demand is high . If one machine is purchased and demand is low the net present value is $120, 0DO . IF demand is high , the manager has three Options . Doing nothing has a net present Value of $120, 000 ; subcontracting , DIED, and ; and buying the second machine , $140. 000 . a. Draw a decision tree for this