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Decision Tree Analysis A company has three choices. Build a small, medium, or large facility. If the small facility is built and demand is high

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Decision Tree Analysis A company has three choices. Build a small, medium, or large facility. If the small facility is built and demand is high the company could expand and earn $800, use overtime and earn $600 or do nothing and earn $550. If demand is medium the company could work overtime and earn $600 or do nothing and earn $500. If demand were low the company would earn $500. If the medium facility is built and demand is low the company would earn $400, medium $600 and high $800. If the large facility is built and demand is low the company would earn $100 or they could increase advertising and earn $300, if demand is medium they would earn $700 and if high $1,000. The probability of low demand is 50%, medium demand is 30% and high demand is 20%. Draw and solve the decision tree to maximize the net present worth

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