Best Buy USA must to decide whether to build a new distribution center in Paramus, New Jersey, to serve its stores in the Northeast region of the United States. The options it has can be simply described as building a small, medium-size, or large facility. The costs and expected returns have been thoroughly estimated but one big question remains: what will be the general level of the demand for the entire range of products that Best Buy USA distributes? Three possible levels of demand in this Northeast region are being considered, depending on the moves by its competitors (there is talk of a competitor going bankrupt, but also some rumors that a new chain is planning to enter the NE market) and the speed of recovery of the economy: a) low (combination of slow economic recovery, additional investments by competitors and low-to-average acceptance of the company's new products), b) average, and c) high (combination of speedy economic recovery, one or more competitor exiting the market, and high acceptance of the company's new products)