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Alternative 1 Mercy hospital could build a new facility, either large or medium. If a large facility is built demand could be high or low
Alternative 1 Mercy hospital could build a new facility, either large or medium. If a large facility is built demand could be high or low with a payoff of $25 million if high and $19 million if low. If a medium facility is built the demand could be high, average, or low. At high demand the payoff will be $30 million, average demand, payoff will be $20 million, and low demand payoff will be $18 million. Alternative 2 Mercy hospital could maintain their current facility where their demand will be high, average, and low. At low demand they will have a payoff of $24 million, average demand a payoff of $28 million and high $35 million. At high demand they could also choose to expand by building an extension to the current facility. If they chose to expand, they will have either an average demand of $30 million or a standard payoff of $22 million regardless of the demand
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