A manager is trying to decide whether to build a​ small, medium, or large facility. Demand can be​ low, average, or​ high, with the estimated probabilities being ​, ​, and ​, respectively. A small facility is expected to earn an​ after-tax net present value of just if demand is low. If demand is​ average, the small facility is expected to earn ​; it can be increased to medium size to earn a net present value of. If demand is​ high, the small facility is expected to earn and can be expanded to medium size to earn or to large size to earn



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