Use Expected Regret Use the alternative method to verify EVPI? APC industries ha

Question

Use Expected Regret Use the alternative method to verify EVPI?

APC industries has been experiencing significant growth and has been having difficulty meeting customer demands recently. They are considering three options to address this issue. They can move to a larger facility, add a second shift or use a subcontractor to assist in production. The annual payoff of each option depends on if the current market continues to expand hold s steady or declines. The expected payoff for each combination is show in the table below

Explanation / Answer

going with the move to larger is best among these three alternative

it gives the value of $88,500

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