The Managing Director of a company is deciding whether to build a large or small additional production facility to ensure that the company has sufcient operating capacity to satisfy current and future sales demand. In consultation with the companys senior management accountant, the following two possible scenarios in terms of the net present value of future cash ows from the alternatives are being considered. Possible Outcome Low Demand High Demand Action Build small facility 700,000 520,000 Build large facility 420,000 2,100,000 It is estimated that there is a 60% probability that demand will be low and a 40% probability that demand will be high. (c) Using the expected value decision rule, advise on the most protable course of action. (10 marks)