Question 20 2 pt XYZ Manufaturing company has hired a new VP (D.A.King) for managing capacity investment decisions. Mr. King reviews the situation after he comes on board and decides that he can invest in Batch manufacturing, Custom manufacturing or Group technology. Mr. King will not be able to forecast demand accurately till after the technology choices are made. Demand will be classified into four scenarios: poor, fair, good and excellent. The table below indicates the payoffs for each combination of technology choice and demand scenario. POOR FAIR GOOD EXCELLENT PROBABILITY 0.1 0.4 0.3 0.2 Batch - $200,000 $1,000,000 $1,200,000 $1,300,000 Custom $100,000 $300,000 $700,000 $800,000 Group Technology - $1,000,000 -$500,000 $500,000 $2,000,000 What is the EVPI = Expected Value of Perfect Information