A plant manager needs to decide whether to expand the capacity of the plant. There are two states of 1 answer below »

A plant manager needs to decide whether to expand the capacity of the plant. There are two states of nature: favorable and unfavorable. In favorable market conditions the plant would make an additional $50,000 when expanded. In unfavorable market conditions the plant would lose an additional $20,000 when expanded. Of course, the manager can choose not to expand and make $0 additional profit in favorable market conditions and lose $0 additional profit in unfavorable market conditions. If the two states of nature are equally likely to occur, what is the Expected Value with Perfect Information (EVwPI) in this case?