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Dwayne Whitten, president of Whitten Industries, is considering whether to build a manufacturing plant in north Texas. His decision is summarized in the following table:
Dwayne Whitten, president of Whitten Industries, is considering whether to build a manufacturing plant in north Texas. His decision is summarized in the following table: Favorable Market Unfavorable Market Alternatives Build large plant Build small plant Don't Build Market Probability a) The correct decision tree for Dwayne is shown in Figure 3 (all payoffs are in thousands). b) To maximize the return, Dwayne's decision should be to Build small plant c) For Dwayne, the expected value of perfect information (EVPI) = $10500. (enter your answer as a whole number). $360,000 $100,000 $0 0.30 - $250,000 - $15,000 $0 0.70
please help find evpi.
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